Investors should keep Bitcoin in their portfolios, even if they believe gold will perform well for the foreseeable future. This statement was made by Troy Gayesky, investment director and chief portfolio manager of the hedge fund SkyBridge Capital.
He expects both bitcoin and gold to continue to rise even after the Fed cut back on asset purchases.
“We will stick with bitcoin and cryptocurrencies simply because we see more potential for growth in them,” Gayesky said.
SkyBridge expects record spending and US government debt to continue to create risks of dollar depreciation and maintain interest in its alternatives.
“Alternatives to fiat currencies, all of which have recently experienced significant corrections, are now in a much better position to deal with the inevitable contraction and gradual slowdown in money supply growth than when they set higher highs,” added Gajeschi.
Gold, he said, has formed a solid foothold and is poised to climb to new highs throughout the year. SkyBridge holds a small amount of equity capital in gold mining companies. Overall, the firm relies on US cash flow strategies backed by tangible assets, problem corporate loans and convertible bond arbitrage. SkyBridge Bitcoin Fund has grown 51.2% since its launch last December.
SkyBridge previously applied to create a Bitcoin ETF in the US, and Gayesky expects such a tool to receive approval in the fourth quarter of this year or the first quarter of next.
“The only reason for our professional existence is to find interesting ways to generate attractive uncorrelated returns that are also attractive from a risk / reward perspective. The mix of strategies in our broader portfolio is enhanced by a small but significant position in alternatives to fiat currencies such as bitcoin, ”he said.