According to Fred Krueger, a prominent person in the bitcoin industry, a huge shift is taking place in the investing sector.
Krueger boldly believes that Bitcoin is on track to become a mainstay in the typical 60/40 investing portfolio, challenging gold’s long-held supremacy as the favoured inflation hedge.
He contends that Bitcoin, with its remarkable performance history over the last 15 years, provides a compelling growth story that is uncorrelated with the S&P 500, making it an appealing addition to investors seeking diversity and growth.
New era for investors?
Krueger’s viewpoint is not isolated. Eric Balchunas, a senior ETF analyst, agrees, describing Bitcoin ETFs as the “portfolio’s hot sauce” — a dynamic addition to the solid but slow-compounding 60/40 basic investing approach.
The fast popularity of Bitcoin ETFs demonstrates an increasing preference for digital assets over traditional ones.
With the ten major Bitcoin ETFs, including GBTC, seeing their net cumulative flows treble to more than $3 billion in only three days, Bitcoin’s momentum is apparent.
This spike contrasts sharply with the rate at which gold ETFs achieved similar milestones.
According to U.Today, Adam Back, CEO of Blockstream, adds to this view by claiming that Bitcoin might reach an incredible $700,000 if it captures gold’s market valuation, marking a historic shift of investor money from gold to Bitcoin.
Balancing views
Despite the enthusiasm for Bitcoin, other experts argue for a more balanced approach. Charlie Morris, a seasoned expert, points out that gold has always recreated itself throughout millennia, functioning as a dependable monetary instrument.
He claims that gold and Bitcoin play distinct functions in an investing portfolio, with gold serving as a “risk-off” asset and Bitcoin as a “risk-on” component.
