Large funds are constrained by rules about profitability and portfolio balancing – hence they may be forced to shed assets like bitcoin that have the potential to return magnanimous gains.
Diversification and Profitability Constraints Make Fund Managers Sell
So far, stock selection rules and the fact that fund managers need to show profitability in their reports means big funds have missed on some of the biggest gainers, commented Jason Zweig at the Wall Street Journal. And if they had to invest in bitcoin and crypto assets, they may arrive late into the game, once BTC has peaked. They may end up buying bitcoin at $1 trillion when BTC is already established, suggested Twitter-based crypto commentator Ceteris Paribus.
Professional fund managers literally can’t hodl.
– Potentially career ending to keep painful short-term positions
– Small managers have to sell if position gets too large (eg. $AMZN)
They’ll buy Bitcoin once it passes a couple Trillion.https://t.co/0AG89uVe6N
— Ceteris Paribus (@ceterispar1bus) December 13,…