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Morgan Stanley Increases Bitcoin Exposure: Buys Over 58,000 GBTC Shares More

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Morgan Stanley continues to accumulate bitcoin through Grayscale’s BTC trust according to a recent SEC filing.

Morgan Stanley – the global financial services mogul – continues to increase its exposure to Bitcoin through Grayscale’s BTC trust.

  • Morgan Stanley continues to increase its exposure to Bitcoin. As CryptoPotato reported back in August, the financial services company’s Insight Fund held 928,051 shares of Grayscale’s Bitcoin Trust.
  • A recent filing with the United States Securities and Exchange Commission (SEC) revealed that it bought an additional 58,116 shares of GBTC as of July 31st.
  • Data shows that, at the time, the shares were worth around $34.5 per pop, meaning that the firm is more or less breakeven on its latest investment.
  • It’s also worth noting that this comes shortly after Dennis Lynch, the Head of Counterpoint Global at Morgan Stanley’s Investment Management, said that Bitcoin is anti-fragile.
  • The high-ranking official believes that the asset can resist market disorders and prosper further when others fail.
  • He even drew a comparison between BTC and an iconic TV character from the popular show South Park, Kenny.

I like to say that Bitcoin is kind of like Kenny from South Park, you know, the guy dies every episode and he’s back again. Owing a little bit of something where things can go right, but also knowing that there are some things that can go wrong is not unreasonable when you have a world that has such disruption occurring, and where these upside scenarios wind up being so large.

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Hedge Fund Billionaire Paul Tudor Jones Says Gold Losing the Race Against Crypto As Inflation Hedge

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Hedge fund billionaire Paul Tudor Jones says that crypto is currently his preferred way of hedging against inflation.

In a new interview with CNBC, Jones says that crypto has acted as a great hedge as of late and is winning the race against gold.

“Crypto has been a great hedge… I said then, I said now, I’ve got crypto in single digits in my portfolio. I have a small trading position in our fund. I do think we’re moving into an increasingly digitized world. Clearly, there’s a place for crypto, and clearly, it’s winning the race against gold at the moment. So yes, I would think that would also be a very good inflation hedge. It would be my preferred one over gold at the moment.”

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The billionaire, who heads investment management firm Tudor Investment Corporation, says that while the new Bitcoin futures exchange-traded fund (ETF) is a regulated and legitimate product, he thinks a better investment is to own physical BTC.

“I think a better way to get in would be to actually own physical Bitcoin, to take the time to learn how to own it and carry it. I think the ETF will be fine. I think the fact that it’s SEC approved should give you great comfort.”

The investor says that embracing Bitcoin is part of the American character and that China’s refusal to do so may have economic consequences for the country in the future.

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“I think crypto is here to stay. Look, this is the United States of America right? The reason we’re the most dominant economic power [in] the world is because we unleash our individual entrepreneurialism and creativity. And you’re seeing China do the exact opposite. That place is on, economically, a slow boat to the South Pole. As long as the US can continue to unchain our entrepreneurs, we’re going to always be in the dominant position.”

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The Real Opportunity for Bitcoin and Crypto Will Come From This Group of Investors, Says Shark Tank Star Kevin O’Leary

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Shark Tank investor Kevin O’Leary says that a group of investors could transform Bitcoin (BTC) and the crypto markets when they decide to allocate capital to the space.

In a new interview with Bitcoin bull Anthony Pompliano on The Best Business Show, the celebrity investor says that there will be a massive opportunity for crypto once sovereign funds in the Middle East invest in digital assets.ADVERTISEMENT

“The real opportunity is not with the family offices or hedge funds that operate out of the Middle East. The real money is in the actual sovereign funds in both Saudi Arabia and the United Arab Emirates. It’s billions and billions and billions of dollars. 

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They have not allocated to crypto yet. When that happens, you’ll see it reflected in the price of Bitcoin. There’s no question about it. They have such long-term views in those funds, and the funds are so large.”

O’Leary says that given the size and number of the funds, even a 1% allocation would have an impact on the markets.

“They generally abide by discipline and principles of risk diversification, so they may have a mandate, for example, that no stock represent more than 5% of the fund or no sector more than 20%. Those are diversification mandates that are used all around the world, and they do that there, too.

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But when you’re dealing with a multi-billion dollar mandate, and some of these, they’re the largest pools of capital in the world. A 1% allocation is a tremendous amount of money.”

The investor says at the moment, Bitcoin is the only digital asset on the sovereign funds’ radar. He predicts that they could easily decide to allocate 1-3% just on BTC.

“I speak to those guys almost every day. They would immediately go to 1% to 3% on Bitcoin alone. Just Bitcoin, let alone Ethereum or any level-1 or level-2s on the chain. They haven’t even thought about that. They’re just thinking about Bitcoin and owning that as an asset. The amount of capital that will come into this market when the regulator approves Bitcoin as an asset or currency or a security, or whatever they’re going to regulate it as is going to be unbelievable.”

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Inflation Is the Problem, Bitcoin Is the Solution — Says Michael Saylor

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  • There are crypto enthusiasts who often say that Bitcoin is a hedge against inflation.
  • Even MicroStrategy CEO, Michael Saylor, believes the same thing.
  • Saylor took to Twitter to say that ‘Inflation is the problem. Bitcoin is the solution.’

Like how the Twitter crypto space reacted to this tweet, the entire crypto market also has varied opinions and take on this matter. More so, this argument says that the central bank money-printing will soon lead to inflation or might decrease in value as time goes on.

In contrast, Bitcoin (like other cryptocurrencies), has a fixed limit of coins that could ever be created. This characteristic of Bitcoin, specifically makes it resistant to inflation.

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Commenting on this matter, Monex Group CEO — Oki Matsumoto says,

There’s a crazy amount of money being printed right now, so the value of money is going down. Assets with limited supply, like bitcoin, real estate or shares/stocks, those price tags are going up.

Reports say that even though the pandemic resulted in drastic drops in the global economy, the crypto space still experienced an increase in asset prices. Perhaps this is because of the new technologies that emerged in the crypto space for the past year, like NFT, Play-To-Earn Games, Metaverse, etc.

However, there are also records that say inflation isn’t soaring at the moment. This brings us to the question —“If that’s the case, why do crypto enthusiasts still see Bitcoin as a hedge against inflation?”

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To answer, some believe that people are buying Bitcoin now to evade future inflation.  If you think about it, this is not totally wrong to do.

With that said, many crypto enthusiasts also think that when it comes to serving as a hedge against inflation, Bitcoin is not actually alone.

Founder of Moneyness Blog — J.P Koning, affirmed that “If you look around your house, everything is an inflation hedge. Your house itself is an inflation hedge, your table, your personal capital, your education are all inflation hedges because all of those things will rise in value as the purchasing power of the currency falls.”

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