Investment bank Jefferies has recently disclosed that 5% of its portfolio is allocated to Bitcoin via VanEck's ETF, marking a strategic hedge against potential USD devaluation.

Role of Bitcoin in Jefferies' Investment Strategy

Chris Woods, the chief strategist at Jefferies, has emphasized Bitcoin's role as a hedge against a potential default on US Treasuries and the USD devaluation. He compared it to gold as a safeguard against currency debasement across the G7 nations. With the SEC's approval of Bitcoin ETFs and support for digital currencies on a national level, Bitcoin is closer to becoming mainstream.

VanEck's Multi-Asset Portfolio and Hedge Fund Interest

Matthew Sigel, the Head of Digital Assets at VanEck, highlighted that hedge funds have been primarily responsible for institutional Bitcoin purchases, while investment advisors have been slower to integrate BTC. VanEck provides a solution through its multi-asset portfolio, potentially attracting more broker engagement.

Lummis Bitcoin Reserve Bill

Chris Woods discussed Cynthia Lummis's initiative proposing Bitcoin reserves akin to gold reserves. Although unlikely to become law in the current Congress, it might gain traction with increasing bipartisan support in future sessions.

Jefferies' investment strategy involving Bitcoin through VanEck's ETF aims to mitigate market risks and USD devaluation. However, the proposal for a Bitcoin reserve faces significant political and economic challenges in the US.