Long-Time Gold Fan Christopher Wood Is Turning to BTC

Are people beginning to give up gold and stocks for bitcoin? This certainly seems like the latest trend as some of the largest financial managers in the world are beginning to turn away from precious metals and other standard assets in favor of the world’s largest digital currency by market cap. The latest gold-turned-bitcoin fan is Christopher Wood, the global head of equity strategies at Jefferies.

Christopher Wood Has Found a New Friend in BTC

In a recent turn of a events, Wood – who has long established a pension fund program that’s based in gold – says he is turning this program away from the metal to focus more on bitcoin. The fund has been around since the year 2002, meaning it was established some time ago. Roughly five percent of the pension fund will be taken out of gold and placed into bitcoin. The money will also be held long term, meaning Wood isn’t just a short timer. He’s in it for the long haul.

In a recent newsletter, Wood outlined his plans by explaining:

The 50 percent weight in physical gold bullion in the portfolio will be reduced for the first time in several years by five percentage points with the money invested in bitcoin.

At the time of writing, the price of bitcoin has surged to a new all-time high beyond $23,000.

There are many financial firms out there that have begun to suggest gold isn’t all it’s cracked up to be. In fact, they claim that bitcoin is likely to edge the precious metal out in the coming years, and the digital currency’s growth represents a long chain of threats to what was once a serious asset that everyone felt they needed to have.

Recently, JPMorgan put out an entire report claiming that bitcoin was a serious threat to gold’s future. The document, written by several strategists with the firm, says that while bitcoin may still be a developing medium of trade, there are several traders out there – both amateur and professional – taking their money out of the precious metals market and placing it into crypto.

Will Gold Suffer?

In the long run, this could potentially hurt the stability of precious metals and cause a few dents in the system. The strategists write:

The adoption of bitcoin by institutional investors has only begun, while for gold, its adoption by institutional investors is very advanced. If this medium to longer-term thesis proves right, the price of gold would suffer from a structural flow headwind over the coming years.

The one big advantage that gold does have, however, is that it’s been around for a rather long time. Thus, gold has had more of a chance to develop trust with its fans and investors, and the asset could still have a large following for this reason.

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