Hedge Fund Pioneer Paul Tudor Jones Says He Holds 1%-2% of Assets in Bitcoin
Macro investor Paul Tudor Jones said that he has “a little over 1%” of his assets in bitcoin during a Monday morning appearance on CNBC.
“Bitcoin, I think it’s great speculation. I’ve got a little over 1% of my assets in bitcoin, maybe it’s almost 2, that seems like the right number,” said the founder and chief investment officer of Tudor Investment Corp. during the interview.
However, Jones also noted that his approach to bitcoin is “conservative.”
“When I think of bitcoin I look at it as one tiny part of the portfolio, it may end up being the best. It may end up being the best performer of all of them, I think it may be. I am very conservative. I am going to keep a tiny percent of my assets in it and that’s it,” Jones said.
Jones shocked the market last week when he struck a bullish tone on bitcoin in an investor letter and said that his Tudor BVI fund had taken steps toward purchasing bitcoin futures. Forbes estimates that Jones has a net worth of $5.1 billion.
“If you take cash, on the other hand, and you think about it from a purchasing power standpoint, if you own cash in the world today, you know your central bank has an avowed goal of depreciating its value 2% per year,” Jones said. “So you have, in essence, a wasting asset in your hands.”
Bitcoin, on the other hand, isn’t subject to the whims of government spending, but is itself risky because it’s only 11 years old, Jones said. He also confirmed that he has a portion of his portfolio invested in gold, a popular inflation hedge, and said he thought the metal could go “substantially higher” if inflation spikes.
“When I think of bitcoin, look at it as one tiny part of a portfolio. It may end up being the best performer of all of them, I kind of think it might be,” he said. “But I’m very conservative. I’m going to keep a tiny percent of my assets in it and that’s it. It has not stood the test of time, for instance, the way gold has.”
Bitcoin investors are betting total users will reach “120 million or 200 million,” Jones told CNBC, with current estimates indicating between 55 and 70 million people own bitcoin.
With society’s continued digitization, the investor said it’s hard to look around and “not to think that the preponderance of evidence at this point in time doesn’t point in that direction.”