Australian investment giant Pendal Group is taking positions in Bitcoin futures as the cryptocurrency takes the front seat in a rapidly digitizing global economy that’s being spurred on by the ongoing pandemic.
Speaking with the Australian Financial Review’s economic correspondent Matthew Cranston, Pendal Group’s head of bond, income, and defensive strategies Vimal Gor says the pandemic has accelerated long-overdue structural changes in the global financial ecosystem.
Although the changes will be drastic, Gor says the fiat currency system will never become obsolete. Gor also believes that government bonds will soon be a dead asset class and that Bitcoin will outlive it.
“Bitcoin is a cockroach that exists. They can’t ban it out of existence.”
According to Gor, Bitcoin is becoming more mainstream and it is far superior to gold as a store of value. As Bitcoin hits a new 52-week high, Gor says Pendal Group, which has a market cap of $1.69 billion on the Australian stock exchange, has been receiving more demand for Bitcoin from its customers.
“We have so many clients asking us about Bitcoin and what to do and how to get access. Large institutions have stayed away so far, but high-net-worth clients and wholesale investors are leading the charge.”
With the economy rapidly digitizing, Gor says the Pendal Group is now taking positions in Bitcoin on behalf of its clients.
“We have been positioning in gold for our clients for many many years now. Now we’re doing it with bitcoin… So we think it’s a very clear and cheap call option on the ongoing digitization of the economy. For this reason, we have long exposure in Bitcoin for some of our client portfolios.”
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