Billionaires Shift from Nvidia to Bitcoin, Eyeing Long-Term Gains

Over the past five years, Nvidia has seen incredible growth, with its stock price soaring by over 2,000%.

Widely regarded as a leader in the AI space, Nvidia has been one of the most talked-about tech investments. However, despite this remarkable performance, some prominent hedge fund managers are shifting their focus away from Nvidia, looking toward an alternative asset—Bitcoin.

Two hedge fund giants, Israel Englander of Millennium Management and Yan Huo of Capula Management, have made notable moves in this direction. Both managers reduced their Nvidia holdings and significantly increased their positions in Bitcoin through the iShares Bitcoin Trust (IBIT), the leading spot Bitcoin ETF. Englander cut his Nvidia stake by 13% while boosting his Bitcoin ETF investment by 116%, and Huo lowered his Nvidia shares by 28%, adding nearly 15% more to his Bitcoin position.

The shift toward Bitcoin reflects its compelling growth potential. Bitcoin has skyrocketed by 350% in the last two years and has increased more than 40,000% over the past decade, fueling optimism about its future. Bitcoin’s price is currently around $101,000, and experts like Cathie Wood of Ark Invest have raised their price targets for Bitcoin, with predictions reaching as high as $3.8 million in the coming years.

Furthermore, Bitcoin is increasingly seen as a hedge against economic uncertainty, much like gold. Institutional investors, including those at BlackRock, are recognizing Bitcoin’s value as a store of wealth and a buffer against inflation, currency debasement, and geopolitical instability. These factors make Bitcoin appealing in uncertain times when traditional tech stocks, like Nvidia, may be more vulnerable.

Despite these shifts, it’s not an all-or-nothing situation. There’s still room for both assets in a balanced portfolio. Billionaire fund managers, for instance, maintain significant holdings in Nvidia while also increasing their Bitcoin positions. The key is to recognize the unique roles each asset plays in a portfolio. Bitcoin offers a hedge against risk, while Nvidia continues to ride the wave of the tech boom. The combination of both could be a strategic move for the long-term investor.

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