Palantir Technologies has led the S&P 500 higher in 2024. Shares have advanced 283% year to date due to the company's encouraging revenue growth and its strong positioning in the artificial intelligence (AI) economy.
But AI is not the only investment theme to catch Wall Street's attention. The hedge fund managers below sold shares of Palantir in the third quarter, and purchased shares of the iShares Bitcoin Trust (NASDAQ: IBIT), an index fund that tracks the price of Bitcoin (CRYPTO: BTC).
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Trades made by Israel Englander are especially noteworthy because he runs the second-most profitable hedge fund in history, according to LCH Investment. And excluding options contracts, the iShares Bitcoin Trust is the eighth-largest position in his portfolio.
The lesson here is not to avoid artificial intelligence stocks, but rather to embrace portfolio diversification. Bitcoin has more than doubled in value this year, and several Wall Street experts think the cryptocurrency will be worth far more a decade or two from today.
Bitcoin's price has increased 35% in the last month alone due to excitement surrounding the US. Presidential election. Not only will Donald Trump return to the White House for a second term, but Republicans came away controlling both halves of Congress.
Some industry observers think the Republican sweep will lead to pro-cryptocurrency policy changes, including the possible creation of a strategic Bitcoin reserve. But Bitcoin also has other catalysts on the horizon. The Wall Street experts below believe spot Bitcoin ETFs will unlock substantial demand, driving its price skyward.