Alternative Investments/Digital Assets: “This Is The Most Interesting Macro Trade I’ve Seen In My Career” (Eric Peters Of One River)
One River Asset Management bought $600 million of bitcoin in November.
Bloomberg revealed Wednesday that hedge fund One River Asset Management was the newest bitcoin whale on the block after it bought up more than $600 million in cryptos. One River chief executive Eric Peters conducted his trades in bitcoin and ether quietly through November at prices below $16,000.
Peters told Bloomberg that his bitcoin and ether holdings would balloon to nearly $1 billion by early 2021.
At that level, One River would be one of the largest investors in the cryptos.
Bitcoin hitting new highs
On Wednesday, bitcoin blasted through the key $20,000 resistance level on burgeoning institutional interest, bullish analyst calls and growing coverage by financial media.
As this is being written the leading crypto is already trading at $23223.50, up 11.5%.
According to Peters, “there is going to be a generational allocation to this new asset class.”
“The flows have only just begun.”
Macro theme bullish for cryptos
Peters is betting that unbridled fiscal spending by governments and debt monetization by central banks will cause a huge increase in the money supply that will devalue currencies and spur inflation.
“Covid-19 provided the ultimate catalyst for that transition,” Peters told Bloomberg. “This is the most interesting macro trade I’ve seen in my career.”
While those macro factors affect gold similarly, Peters is more enamored of cryptos and their potential for a quicker and further rise.
“There definitely are more risks to this than gold, which has been around for thousands of years, but there’s also way more convexity,” he said. “There are very few convex bets that’ll help your portfolio when these macro forces start playing out.”
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