Christopher Wood, Jefferies’ Global Head of Equity Strategy, has removed Bitcoin from his flagship ‘Greed & Fear’ model portfolio, citing long-term security concerns linked to advances in quantum computing. Wood replaced a 10% Bitcoin weighting with a split allocation of 5% physical gold and 5% gold-mining equities.
Wood added Bitcoin to the portfolio in December 2020 and increased the allocation in November 2021. In the latest update, he said the quantum issue may not hit Bitcoin’s price in the near term, but it can weaken the long-term ‘store of value’ argument used in pension-style portfolios.