Physical Address

304 North Cardinal St.
Dorchester Center, MA 02124

Billionaires are selling Nvidia and buying a Bitcoin ETF that could rise as much as 3,700%, according to Cathie Wood


Many billionaire investors have gained Nvidia‘S (NASDAQ:NVDA) Stock as it has risen sharply in recent years. That wasn’t surprising, as the company’s rapid sales of artificial intelligence (AI)-focused data center GPUs made it one of the market’s fastest-growing stocks.

Still, it wasn’t surprising to see some of these big investors reduce their exposure to the chip maker after the chip rose 2,100% over the past five years. Nvidia continues to grow like a weedbut it still faces longer-term challenges such as export restrictions to China, potential antitrust investigations and competition from other AI chipmakers. The macroeconomic headwinds could also eventually lead more companies to limit their spending on new AI software and hardware.

A gold coin with the Bitcoin symbol on it.
Image source: Getty Images.

According to their latest 13F filings, some billionaires have sold their Nvidia shares. Millennium Management’s Israel Englander reduced its stake in Nvidia by 12.5% ​​in the third quarter of 2024. Yan Huo of Capula Management reduced his stake in Nvidia by 27.7% in the third quarter.

But at the same time, these two closely watched billionaire investors increased their exposure to Bitcoin (CRYPTO:BTC) through the popular iShares Bitcoin Trust ETF (NASDAQ:IBIT). In the third quarter, Englander increased his position in the exchange traded fund (ETF) by 12.6 million shares, while Huo purchased an additional 1.1 million shares.

This move from Nvidia to Bitcoin suggests this world’s leading cryptocurrency could still have room for improvement after rising more than 1,000% in the last five years. Cathie Wood, who holds Bitcoin through Ark Invest 21Shares Bitcoin ETF (NYSEMCT:ARKB)sees its price rising from about $100,000 to $3.8 million by 2030. If that happens, these spot price ETFs could rise a whopping 3,700% over the next five years. This rally would turn a modest $10,000 investment into $380,000.

Investors should take these optimistic estimates with caution as it is still difficult to properly value Bitcoin. But let’s take a look at Bitcoin’s potential catalysts and why it could be better than Nvidia and other growth stocks in the long run.

Bitcoin is mined using an energy-intensive proof-of-work (PoW) method, which currently requires powerful application-specific integrated circuit (ASIC) miners. The supply of 21 million Bitcoins is limited and 19.9 million of these coins have already been mined. Every four years, the reward for Bitcoin mining is halved through a planned “halving”. The last halving took place in April 2024 and the next one is scheduled for 2028.

Leave a Reply

Your email address will not be published. Required fields are marked *