As per a hedge fund of $7.5 billion, by next year, gold will take a hike. However, the investors who are looking for alternatives to currencies can go for BTC.
The hedge fund of $7.5 billion SkyBridge Capital states that gold can and will achieve a greater height in the coming years. Still, investors who are seeking an alternative to the currency should prefer to seek Bitcoin instead. The senior portfolio manager, as well as the Co-Chief investment officer of SkyBridge Capital, Troy Gayeski, explained that BTC, along with gold, might become related because the Federal Reserve has decided to narrow the purchase of the asset. Moreover, the minds of investors are usually comparing gold with Bitcoin.
As per the statements of Lawrence Summers, who is the former Treasury Secretary, cryptocurrency can remain an attribute that is relatively close to digital gold in the global market.
During the current year, gold, as well as BTC, had their swings, and it has created a topic of debate whether cryptocurrencies are fetching the desire for gold. This digital currency or token has taken an incredible hike of around $65,000 in the month of April, which was about $36,600 in the last. At the same time, gold has sunk into the market by March.
The SkyBridge firm, the manager of fund-of-funds, was exposed to one gold miner. From last year December to 1st June, their Bitcoin funds are up 51.2%.
The First Trust Advisors, a fund for exchange and trade, was teamed up by the founder of SkyBridge, Anthony Scaramucci. This fund is planning to purchase and trade Bitcoin. Gayeski is expecting that the Securities and Exchange Commission is going to approve the product in the coming months of this year or at the beginning of next year.
In a telephonic interview held in the last week, Gayeski stated that they would hold on to the cryptocurrencies such as Bitcoin, as they think that there is extra upside in these digital currencies than gold.
As per him, gold has developed a floor in the current year. However, in the previous year, it gave a hike and came up to more than $2075 per ounce. He also added that the pace at which gold is now purchased would not be brought down by the Fed.
However, Gayeski said that the chances for gold to keep this trend in the coming year are quite high.
He also stated that this strategy mixture in a comprehensive portfolio would be amplified with the help of these small meaningful positions in currencies such as Bitcoin, which are an alternative.