It was tough for Bitcoin (Cryptography: BTC) Recently, this has been a 16% decline that year. But despite this disappointing performance in 2025, some of the world’s smartest billionaires are actually looking for ways to enhance their exposure to Bitcoin.
Billionaire hedge fund manager Paul Tudor Jones has nearly doubled his shares in iShares Bitcoin Trust, according to the latest Quarterly Securities and Exchange Commission (SEC) 13F filing (NASDAQ: IBIT) 4.4 million to 8.1 million shares. As of mid-February, he had 4.5% of his $9 billion portfolio invested in this spot Bitcoin Exchange Trade Fund (ETF). So why is Jones so bullish now with Bitcoin?
The reason why Jones spends so much money to work for Bitcoin may surprise you. Yes, Bitcoin has a surprising upside potential, but he is particularly engrossed with the possibility of Bitcoin acting as a hedge against inflation and economic uncertainty.
Last October, Jones made waves when he declared that “every road will lead to inflation,” no matter who wins the November presidential election. As he saw it, the current economic situation in the US is so unacceptable, and the country’s deficit has grown so large, the only way to deal with this economic disruption was to inflate our paths.
The good news is that Bitcoin could become a potential hedge against these inflationary pressures. For almost a decade, Bitcoin supporters have emphasized the characteristics of their termination. The Bitcoin algorithm carefully controls the amount of bitcoin that can be created. This cannot be changed by businesses or governments.
Image source: Getty Images.
In fact, Bitcoin is often referred to as digital gold. Just like physical gold, it has a finite supply and inherent rarity. Certainly, Jones says that both gold and Bitcoin are at the top of the current investment agenda.
Of course, Jones’ thinking may have changed since October. After all, President Donald Trump is now accusing Elon Musk and his Doge team of finding ways to cut government spending. So there may be an alternative to printing more money and inflated the economy.
It’s interesting to peer under the hood and see what else Jones holds. His biggest holdings are the iShares Bitcoin Trust, which is now worth an estimated $427 million.
His next three biggest holdings are also the ETF. EnergySelectSector SPDR Fund, Ishares Core S&P 500 ETF, and iShares Russell 2000 ETF. Together, they make up an additional 5% of his portfolio.
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His largest single company stockholder is Keranova (NYSE: K)formerly known as the Kellogg Company. Another top holding is Nvidia (NASDAQ: NVDA)although he recently cut his position by 37% in the most recent quarter.
Putting this all together, you can see how you can build a winning portfolio that includes exposure to Bitcoin. For Jones, that means pouring money into the iShares Bitcoin Trust. It has a net worth of over $59 billion.
In the past few quarters, Jones used iShares Bitcoin Trust to ratchet Bitcoin allocations to almost 5%. This is the upper limit of Bitcoin’s proposed portfolio allocation range, indicating how bullish he is. For example, BlackRock, the company behind Ishares Bitcoin Trust, recently said 2% is the best bitcoin allocation for most investors.
Also, please note that the filing on 13th floor only represents snapshots within the time limit. Jones is very public in his view, and while it is possible to speculate a lot about his overall investment approach, it is not clear how his ideas have evolved over time. So it would be interesting to see what he’s made recently when the 13th Fifth filing comes out for the next quarter.
Many investors tend to focus solely on the possibility of Bitcoin rising. They focus on the $1 million price target and the potential for Bitcoin to increase its value by 10 or 100 times over the long term.
However, Jones clearly sees Bitcoin’s overall risk reward profile more overall. In a market full of uncertainty, Bitcoin may be able to provide a type of negative side risk protection that other assets cannot. And it can now be an invaluable addition to your portfolio.
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Dominic Basulto has a position in Bitcoin. Motley Fool has posted and recommended positions on Bitcoin and nvidia. Motley Fools have a disclosure policy.
Billionaire hedge fund manager Paul Tudor Jones is doubling Bitcoin. Should you do it too? Originally published by The Motley Fool
