This huge Wall Street fund has bet $744 million on Bitcoin: its bosses trust their hopes
New Bitcoin Fans – Big companies and institutional investors are increasingly interested in Bitcoin (BTC) and cryptography. UK investment fund Ruffer, which revealed its crypto-acquisitions in December, is led by executives more confident than ever in the future of the cryptosphere.
More than 3% exposure to cryptos in their mega-portfolio of assets
Ruffer Investment specialises in investment management for its wealthy clients. The London-based hedge fund had over $29 billion in assets under management at 31 December.
In their latest report, published on 18 January, Ruffer’s teams Crypto Genius detail their investment of nearly $744 million in the cryptocurrency sector, and more specifically in Bitcoin.
“Exposure to Bitcoin was a significant addition to our portfolio in November. We gained exposure to Bitcoin through the Ruffer Multi Strategies Fund and two equities: MicroStrategy and Galaxy Digital. At the end of this period our combined exposure [to Bitcoin] was just over 3%. »
It was a timely jackpot for Ruffer, as the report states that in the weeks following the investment, “both shares rose by more than 100%, and Bitcoin rose by 90%”.
A world in need of a safe haven: Bitcoin as saviour?
With a current economy where government bond yields have become zero or even negative, Bitcoin clearly appears to be a way out, according to the Ruffer report:
“Because of zero interest rates, the investment world is desperately looking for new safe havens and assets that are uncorrelated [to other markets]. We think we are relatively ahead of the curve in this respect, starting a long trend towards the institutional adoption and financialisation of Bitcoin. »
The investment fund considers the “bad reputation” label it seeks to attach to Bitcoin as a “risk premium”: it could allow them greater gains as early investors, if the king of cryptos were to fully succeed in its adoption by traditional finance.
Quoted by bitcoin.com, Jonathan Ruffer, president of Ruffer, explains that he sees Bitcoin as a possible global reserve currency in the future:
“Our underlying reasoning is that Bitcoin is becoming a challenger to gold as a single super-currency, the thing to own when fiat currencies crash noisily to the ground. »
The vision of Ruffer’s CEO is therefore the same as that of Michael Saylor, CEO of MicroStrategy: Bitcoin is the best current store of value for them. Will Bitcoin ever serve as a monetary benchmark, in the same way that gold has in the past? Only time will tell.