Paul Tudor Jones Doubles Down on Bitcoin ETF

A recent SEC filing reveals that Tudor Investment Corporation held over 4.4 million shares in BlackRock’s iShares Bitcoin Trust ETF (IBIT) as of September 30. This marks a substantial increase from just 869,565 shares in June. Signaling growing confidence in Bitcoin as a hedge against inflation.

At the time of reporting, the ETF holdings were valued at $160 million but have since surged to $230 million, reflecting Bitcoin’s recent price rally.

Bitcoin as “Digital Gold”

Paul Tudor Jones has been a vocal advocate for Bitcoin, frequently highlighting its potential as a store of value in an inflationary environment. “I think all roads lead to inflation,” he remarked during a CNBC interview earlier this month.

Jones added that Bitcoin, along with gold and commodities, forms the backbone of his investment strategy. He believes these assets are underrepresented in traditional portfolios and serve as effective hedges against rising federal debt and inflationary pressures.

The Role of Bitcoin ETFs

BlackRock’s iShares Bitcoin Trust ETF has become a cornerstone for institutional Bitcoin adoption. As the largest Bitcoin ETF in the U.S., it offers traditional investors an accessible way to gain exposure to the cryptocurrency. ETFs simplify investment in Bitcoin by allowing people to buy shares that track its value without directly owning the asset.

The SEC’s approval of Bitcoin ETFs in January 2024 marked a turning point for crypto adoption, enabling regulated trading of Bitcoin-based ETFs on stock exchanges. BlackRock’s ETF has since attracted the most inflows and trading volume among its peers.

Inflation and Bitcoin’s Resilience

Jones’ bullish outlook on Bitcoin aligns with his broader views on inflation. With increasing U.S. federal debt and what he describes as “ridiculously underowned” commodities, he sees Bitcoin as a long-term bet.

“Bitcoin is digital gold,” Jones said, reiterating his belief in its utility as a hedge against economic uncertainty. His firm’s growing stake in BlackRock’s ETF underscores this conviction, positioning Bitcoin as a central component of his portfolio.