Jefferies’ strategist cut Bitcoin from his model portfolio and shifted 10% into gold.

He cited long-term security risks and growing confidence in physical assets.

Christopher Wood, Global Head of Equity Strategy at Jefferies, said this week that Bitcoin no longer fits his model portfolio.

He removed a 10% allocation and moved that capital into physical gold and gold-mining stocks, pointing to long-term risks tied to cryptography and technology.

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Christopher Wood Removes Bitcoin From His Model Portfolio

Wood explained that the decision was not about short-term price moves. Instead, it focused on structural risk.

Bitcoin previously held a 10% position in his portfolio, making the change meaningful for institutions that track Jefferies’ models.

The reallocation split capital between physical bullion and gold-mining companies.

This approach offers direct exposure to gold prices while keeping some upside through miners. 

Following the announcement, trading desks reported higher volumes in gold ETFs and increased activity in large-cap mining stocks.

Custodians also saw more inquiries for allocated gold storage.

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Wood Says Quantum Computing Changes The Bitcoin Risk Profile

Wood pointed to quantum computing as a long-term threat to Bitcoin’s cryptography.

If future machines can break current encryption standards, private keys could become vulnerable.

While this risk is not immediate, the impact would be severe if it materialized.

For institutional investors, uncertainty matters.

No clear timeline exists for quantum breakthroughs, and upgrading global crypto security would take years. Gold avoids that issue entirely. 

It does not rely on code, networks, or encryption, and ownership remains legally straightforward.

Market Reaction Shows Renewed Interest In Gold

Bitcoin prices saw short-term volatility after Wood’s comments. 

At the same time, gold-linked assets attracted fresh attention.

ETF inflows increased, mining stocks traded heavier volumes, and bullion dealers reported stronger institutional inquiries. Gold’s price is also on the uptrend. 

We are now watching whether other strategists follow Wood’s lead.

Additional reallocations would signal a broader shift toward physical assets as a hedge against long-term technology risk.

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Conclusion

Wood’s move does not dismiss Bitcoin’s potential.

It shows how some large investors now prefer gold when facing risks that cannot be easily measured or hedged with software-based assets.

Our next premium members Gold and precious metals analysis and alert will be published in the coming days where we will share key insights.