Bitcoin is a „convex bet“, says the CEO of an institution with a $600 million exposure at BTC
Another giant reveals its upward position in Bitcoin.
2020 has been a great year for the massive adoption of Bitcoin (BTC). One of the newest participants in the space is One River Digital Asset Management, a hedge fund headed by CEO Eric Peters.
The firm expects to hold approximately $1 billion in Ethereum (ETH) and BTC for the first half of next year, and has already accumulated approximately $600 million in assets, a Bloomberg news release said Wednesday. Alan Howard, co-founder of Brevan Howard Asset Management and a well-known billionaire, is also involved in the company.
Peters‘ position at Crypto Trader aligns with that of other players, who see Bitcoin as a possible hedge against gold-like inflation during uncertain economic times. Considering interest rates, printing money and other factors, Peters told Bloomberg:
„There are definitely more risks to this than gold, which has been around for thousands of years, but there is also much more convexity […] There are very few convex bets that will help your portfolio when these macro forces start to develop.
Peters has embarked on a train of thought leadership that sees BTC becoming more and more prevalent in the days ahead. He explained:
„There’s going to be a generational allocation to this new asset class.“
However, One River did not just buy the USD 600 million at BTC and ETH yesterday. According to Bloomberg’s article, Peters completed the purchases in November, secretly acquiring lots of assets without arousing public enthusiasm.
Bitcoin’s price recently reached $20,000 and remains above that level at the time of this article’s publication.