Banks should focus on blockchain technology and investors should increase their bitcoin holdings while trimming gold exposure, according to Jefferies Global Head of Equity Strategy Christopher Wood.

“This concept of how [blockchain] has begun to eat conventional finance is why all banks should be focused on the technology to see how to try and profit from it rather than to wait and be disrupted by it,” Wood said in a note on Thursday.
The analyst also noted that if blockchain technology disrupts the conventional finance sector by eliminating the need for intermediaries, it can also potentially trigger the end of the “dollar paper standard.”
Wood said he will be adding another 5% to his bitcoin exposure, bringing it to 10%, while cutting 5% exposure to gold in his global, long-only asset allocation portfolio recommendation for his U.S.-dollar-based pension funds.
His portfolio recommendation currently has 40% gold, 30% Asia (excludingJapan) equities, 20% unhedged gold mining stocks and 10% bitcoin exposure.
Wood is not putting ethereum in the fund portfolio, however, because he doesn’t think it is a “store of value” asset. However, he expects the second-largest cryptocurrency by market value to outperform bitcoin in the coming months.

Wormhole’s W Token Has a 999% Weekly Return; Why VanEck Is Bullish on Ethereum Layer 2s

45:11

Bitcoin’s Price Is Way Up. And $48 Trillion in Wealth Just Got Access

08:42

Bitcoin Ecosystem Developments in 2023 as BTC Hits Fresh 2023 High

01:10

Bitcoin Extends Rally as $1B in BTC Withdrawals Suggests Bullish Mood

1:02:43

Why Financial Advisors Are So Excited About a Spot Bitcoin ETF

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Consensus

31

06

28

08

Jefferies’ Wood Urges Banks to Embrace Blockchain, Add More Bitcoin Exposure

The Jefferies strategist is “fundamentally bullish” on crypto and added another 5% exposure to his current bitcoin allocation recommendation.

Wormhole’s W Token Has a 999% Weekly Return; Why VanEck Is Bullish on Ethereum Layer 2s

10 Years of Decentralizing the Future

Wormhole’s W Token Has a 999% Weekly Return; Why VanEck Is Bullish on Ethereum Layer 2s