Jefferies Recommends Bitcoin as a Shield Against Inflation

Leading global investment bank Jefferies has endorsed Bitcoin (BTC) as a protective measure against the depreciation of currency and escalating inflation.

At the moment, Bitcoin is priced approximately at $27,961.

Jefferies strongly encourages long-term investors, especially pension funds, to apportion 10% of their portfolios to Bitcoin, measured in U.S. dollars.

The bank emphasizes viewing investments in Bitcoin and gold as precautionary steps instead of fleeting trades.

The bank’s analysis reveals that efforts to stabilize monetary conditions might encounter prolonged holdups in the current economic phase, pointing to the marked expansion in money circulation from 2020 onward.

Christopher Wood, who leads Jefferies’ Global Equity Strategy, voices apprehensions about the capacity of G7 central banks, the Federal Reserve included, to smoothly shift away from nontraditional financial measures.

He speculates that these central banks will probably continue augmenting their balance sheets in diverse manners, spotlighting the urgency of wise investment choices in an evolving economic scenario.

Highlighting Bitcoin’s function as a bulwark against inflation, Jefferies observes that investor concerns of a potential U.S. recession have largely been set aside. Yet, consistent economic signals hint at an impending economic slump.

Bitcoin’s reputation as a buffer against financial turbulence grew more pronounced this year, especially after challenges faced by the U.S. banking sector.

Prominent institutions like Signature Bank, Silicon Valley Bank, and First Republic Bank confronted considerable difficulties earlier this year. This came as a result of customers withdrawing substantial amounts, spurred by dwindling trust in the banks’ solidity.

Hopes Rise for Bitcoin ETFs After Grayscale’s Legal Win

Although the Securities and Exchange Commission (SEC) has not yet authorized a direct Bitcoin Exchange Traded Fund (ETF), a recent legal victory for Grayscale Investments has raised hopes for potential Bitcoin ETFs in the future.

This judgment obliges the SEC to assess Grayscale’s request, but the regulator can still contest this judicial decision. An approved Bitcoin ETF would be listed on standard stock exchanges, while Bitcoin’s custody would be overseen by a broker.

The SEC has routinely turned down Bitcoin ETF proposals, expressing reservations over insufficient protection for investors from possible market manipulations.

However, crypto aficionados are hopeful that a greenlit Bitcoin ETF could foster wider institutional adoption. An ETF of this kind would streamline the process for investors, facilitating easier trading of digital currency via broker accounts.

Market Vector Indexes CEO, Steven Schoenfeld, has shown confidence in the SEC potentially greenlighting several Bitcoin ETF applications, perhaps sooner than initially expected.

On September 26, members of the House Financial Services Committee penned a letter to SEC Chair Gary Gensler, pressing for the endorsement of ETF submissions. They did, however, hint at discussing this topic in a forthcoming session with Gensler.

Simultaneously, Cathie Wood, the chief executive of renowned investor ARK Invest, has showcased her renewed hope for a Bitcoin spot ETF approval in the U.S.

Wood commented on the increasing likelihood of such an eventuality. This sentiment is in line with the ongoing endeavors of major firms, including the likes of Fidelity and BlackRock, aiming to introduce a Bitcoin ETF in the U.S., mirroring a mounting interest in providing investors with more straightforward cryptocurrency access.