Bloomberg Analyst Bets Big On Bitcoin ETFs, Says It Is ‘Hot Sauce’ In A Portfolio
Bloomberg analyst James Seyffart said that many investors saw Bitcoin as a hedge, while gold remained under-allocated, suggesting room for both assets to grow.
- James Seyffart, an ETF analyst at Bloomberg, said Bitcoin exchange-traded funds could grow larger than gold exchange-traded funds over time.
- He described Bitcoin exposure as “hot sauce” in portfolios due to its outsized impact at small allocations.
- Bitcoin and gold prices have diverged recently, with gold rallying over the recent months, and Bitcoin prices sliding.
Bloomberg analyst James Seyffart said that Bitcoin (BTC) exchange-traded funds (ETFs) could eventually outgrow gold ETFs, despite the two assets moving in opposite directions in recent months.
Speaking on the Coin Stories podcast with host Natalie Brunell on Thursday, Seyffart said Bitcoin could serve multiple roles in a portfolio, unlike traditional assets. “You have all these different ways of viewing Bitcoin,” he said, pointing to its use as a form of money, a store of value, and a diversification tool. He added that even small allocations can have a large effect on returns, describing Bitcoin as “hot sauce” in a portfolio.
Bitcoin ETFs initially moved closely with gold following their launch, but that relationship has since shifted. Gold has rallied in recent months, while Bitcoin has moved lower.
Bitcoin’s price was trading at $67,098, up 0.7% over the past 24 hours. On Stocktwits, the retail sentiment around BTC remained in the ‘bearish’ territory, while chatter levels around it remained ‘low’ over the past day.
On the other hand, gold prices slid by over 2% to $4,677 per ounce.
Seyffart said that while Bitcoin was often treated as a short-term risk asset, its broader use cases could support long-term adoption.
Portfolio Positioning And Institutional Adoption
Seyffart said investors may approach Bitcoin differently depending on their strategy, including as a hedge against currency debasement, a growth asset, or a diversification tool. He noted that Bitcoin is still viewed by markets as a risk asset in the near term, even as some investors position it as a long-term monetary alternative.
The analyst said gold remained under-allocated in many traditional portfolios, while Bitcoin allocations were still relatively small, suggesting potential room for both assets to grow within institutional investment strategies.
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