Death, Taxes, Crypto: Fmr. $13 Billion Asset Chief Certain Every Investor Will Own Bitcoin
Every investor will own crypto eventually, according to a former asset manager. } Source: Shutterstock
By CCN: Travis Kling, a former L/S Equity Portfolio Manager at Point72, a hedge fund with $13 billion in assets under management (AUM), has said in the long-term, every investor will have some exposure to crypto assets like bitcoin.
Kling, who founded crypto asset management firm Ikigai Asset Mangement, said:
Every investor will have crypto asset exposure in their portfolio eventually. All of them. How early or late each of them are will matter a lot for that portfolio.
The statement of Kling comes after the bitcoin price has risen 66 percent in the past month, breaching $8,000 and recovering to late 2018 levels.
I’m part of the revolution. Long $BTC, short the bankers.
— Russell Okung (@RussellOkung) May 14, 2019
What would push every investor to own bitcoin and crypto?
In an essay published on Kana & Katana, a research platform operated by the Ikigai team, Xapo CEO Wences Casares made a case for every $10 million portfolio holding at most 1 percent in bitcoin.
Although crypto assets remain a high-risk asset class, the potential reward of owning bitcoin in the case it succeeds in becoming an alternative store of value over the long run is worth a small risk of 1 percent of a portfolio.
“I suggest that a $10 million portfolio should invest at most $100,000 in Bitcoin (up to 1% but not more as the risk of losing this investment is high). If Bitcoin fails,