Tobam investment director Yves Chueifaty believes Bitcoin is great for portfolio diversification. In addition, it is the first cryptocurrency that can become a “single measure of value”.
In an interview with Financial News, Ives Choueifaty noted that with the right approach, investing in cryptocurrencies will help diversify the portfolio and protect investors’ funds. And investing $ 1 million in the S&P 500 index risks losing more money than investing $ 25,000 in bitcoin.
“If you have not bought bitcoins, you cannot be aware of the risks. This is a unique asset. And it makes no sense to say that it is excessively risky – if you think that an asset carries high risks, then you simply invest less money in it. It is much more risky to invest $ 1 million in S&P than $ 25,000 in bitcoin, ”Shueifati said.
CIO Tobam said that he became interested in cryptocurrencies in 2013, when the bitcoin rate was $ 500. According to him, he and his colleagues often met in a pizzeria, discussed the prospects for the cryptocurrency market and recalled how in 2010 Laszlo Hanyecz bought a pizza for 10,000 BTC.
In 2017, the French company Tobam was one of the first in the world to launch a fund for investing in bitcoin, which could be accessed by professional investors. And now the company’s clients are attracted by the possibilities of investing in cryptocurrencies.
“Bitcoin is like chlorine. This is a dangerous, war gas. However, add 3 drops to water and it will kill germs. And if you invest from 1% to 3% of a well-diversified portfolio in Bitcoin, then it will become even better protected from risks, ”Shueifati said.
Tobam’s top manager also noted that the European market is lagging behind the American market in terms of cryptocurrency adoption. He recalled that recently the American regulator approved the launch of an ETF on bitcoin futures.
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