Bitcoin Not a Long-Term Allocation, Says Man Group CEO

Luke Ellis, CEO of U.K. hedge fund Man Group, sees bitcoin as a trading instrument rather than a long-term asset allocation.

• Appearing on CNBC's "Squawk Box" on Friday, Ellis revealed that he had "dabbled" in bitcoin but sees himself as a trader rather than a HODler.
• "I see it as a trading instrument, so we trade around it and try to provide some liquidity into the market," he told CNBC's Andrew Ross Sorkin.
• Ellis also said he did not think it was necessary for companies to hold bitcoin on their balance sheets, describing this as "confusing" considering the business use case relative to the inherent speculation.

• "I don't think companies are supposed to be speculate with their cash balances," he added.
• Large companies such as Tesla and MicroStrategy have disclosed large treasury investments in bitcoin in recent months.
• Man Group is a London-based hedge fund, managing around $123.6 billion for its mostly institutional clients.

See also: Coinbase Has Held Crypto Assets Like Bitcoin on Its Balance Sheet Since 2012