Mark Yusko says that Bitcoin is one of the most asymmetric assets he has seen in his career as a fund manager

Bitcoin (BTC) represents an investment in technology and innovation, which makes it an essential element in any portfolio, Morgan Creek Capital CEO Mark Yusko suggested in an interview with Max Keizer on the Keizer Report, published on 30 January.

Morgan Creek CEO: Bitcoin Exposure Boosts Portfolios

Keizer began by pointing out that portfolios with even 1% Bitcoin exposure have more alpha or, in other words, have surpassed almost everything in the past five years. By definition, alpha represents the performance of a portfolio in relation to a benchmark. Portfolio managers seek to generate alpha by diversifying the portfolios to eliminate unsystematic risk.

“It’s amazing,” said Yusko. “If I took 1% of all donations and foundations 5 years ago, it would be USD 6,700 million of 670,000 million. You took that one percent – half of the shares, half of the bonds – and instead of making 7.2% , which is what they did, they would have done 9.2% or 200 basis points better. Two out of 7.2% is a lot alpha. “

But while admitting that Bitcoin had a non-zero probability that the price would reach zero, he also said it offers a ten to one of the disadvantages. This, according to Yusko, makes Bitcoin one of the most asymmetric assets he has seen in his career. It also suggests that it will be increasingly normal for traditional funds to seek exposure, continuing:

“So it’s crazy that we look back ten years from now and say that as a trustee of a pension fund, sovereign wealth or family office we should have had some kind of exposure to that asset.”

Bitcoin shows the power of permanence as an asset class

The growing evidence is that investors are accepting Bitcoin as time goes by, especially since the price of BTC is currently rising towards the USD 10,000 mark.

With the increasing volumes of Bitcoin and the open interest in the Chicago Mercantile Exchange, the new institutional investment products (not to mention the performance superior to everything, including Amazon gold shares in recent years), BTC looks every time More attractive to investors.

Admittedly, many fund managers still see Bitcoin as a scam, says Yusko, as opposed to what he argues: that it really is an evolution of technology, in which Bitcoin will play a fundamental role as a base layer protocol.

Keizer: “You own a part of the protocol”

But while both Keizer and Yusko agreed that most cryptocurrencies will fail, Bitcoin and perhaps a handful of other cryptocurrencies can provide an opportunity that is quite different from the technology actions of the “dot com” era.

“The protocol is the application,” Keiser said, equating him with an opportunity to buy shares in the concept of email in the 1990s. He continued: “With Bitcoin, you have that opportunity. You own a part of the protocol that is dominant. ”

As Cointelegraph reported last month, Bitcoin has dwarfed all other assets in performance over the past decade by almost 9,000,000%. However, so far this year, BTC is not even the best performing asset. Shares of Tesla, or TSLA, have risen 38% to date, compared to 30% of Bitcoin.

In October, Cointelegraph reported that the investment management company VanEck explained why Bitcoin improves the performance of investor portfolios, and cited the low correlation of BTC with traditional assets as one of the main reasons.


Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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