Your 60/40 Portfolio May Be 100% Exposed to a Dying Dollar, Bitwise Says
Investors just moved a record $7 billion into gold and Bitcoin (BTC) funds in five days. Bitwise CIO Matt Hougan blames a flaw in the 60/40 portfolio, which is 100% exposed to fiat currency.
Bloomberg senior ETF analyst Eric Balchunas calls it the debasement trade, a bet on assets no government can print. This week, that bet pushed AI funds out of the headlines.
Why the 60/40 Portfolio Is Suddenly Under Fire
SPDR Gold Shares (GLD) took in $3.4 billion in the week through August 21. BlackRock's iShares Bitcoin Trust (IBIT) added just over $1 billion, data shows.
Meanwhile, the VanEck Semiconductor ETF (SMH) bled $1.7 billion, more than any other fund. Money did not leave the market. It switched sides.
"DEBASER: Gold and Bitcoin ETFs have combined for +$7b in flows in past week, by far a record for a 5-day period as debasement trade steals spotlight from AI. GLD, IBIT leading, in Top 10 for week. Also notable $IBIT YTD flows are now positive, completely dug out of sizable hole," Balchunas shared.
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