Billionaires Shift Investments from Nvidia to Bitcoin ETFs Amid Market Changes
In recent trading activity, some high-profile billionaire investors are reducing their stakes in Nvidia, a leading chipmaker, while increasing their positions in Bitcoin exchange-traded funds (ETFs). Notably, Israel Englander from Millennium Management and Yan Huo from Capula Management both scaled back their holdings in Nvidia, with Englander cutting his investment by 12.5% and Huo by 27.7% in the third quarter of 2024.
Despite Nvidia's remarkable growth driven by demand for AI-focused graphics processing units, industry challenges, including export restrictions and rising competition, have prompted these investors to look towards Bitcoin as a more promising opportunity. Englander acquired an additional 12.6 million shares of the iShares Bitcoin Trust ETF, while Huo bolstered his investment by 1.1 million shares.
Experts speculate that Bitcoin might still have significant growth potential, with some forecasts suggesting it could rise from its current value of about $100,000 to as high as $3.8 million by 2030, representing an astonishing possible gain of 3,700%. Bitcoin's scarcity, with a limited supply of 21 million coins, along with periodic halving events that reduce mining rewards, adds to its appeal as an investment.
As institutional interest in Bitcoin grows, especially through ETFs, it may attract investors seeking alternative assets in the fight against inflation. The ongoing dynamics in the markets suggest a transformative period for cryptocurrencies and AI stocks alike.
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