Ruffer, a British fund manager in its half-yearly review lauded bitcoin and its growing influence among institutions as its recently revealed portfolio of $730 million in Bitcoin along with its exposure through MicroStrategy and Galaxy Digital has more than doubled since its investment in the top cryptocurrency. The British Fund Manager recently revealed that it has invested nearly 550 million pounds in the top cryptocurrency by the end of November which has now grown to over $1 billion and nearly 3% of its portfolio.
Whimsical note on bitcoin from the good folks at Ruffer
— nic carter (@nic__carter) January 12, 2021
The firm in its yearly review noted that they belive they are early adopters of the nascent tech as more institutions would like to get greater exposure to Bitcoin as they understand the scarcity and technical superiority it. The official statement read,
“We think we are relatively early to this, at the foothills of a long trend of institutional adoption and financialization of bitcoin,”
Ruffer accepted that Bitcoin as an asset is relatively more volatile and there is no guarantee that it would go mainstream, however despite those risks, looking at its growing adoption along with its scarcity and decentralization would make it a choice of many institutions. The firm noted,
“Due to zero interest rates the investment world is desperate for new safe-havens and uncorrelated assets. Our rationale has been well-publicized but briefly, we have a history of using unconventional protections in our portfolio. This is another example, a small allocation to an idiosyncratic asset class which we think brings something significantly different to the portfolio”
Institutions Have Realized The Bitcoin Potential
Ruffer is not the first institution or fund manager to invest or claim that they see it as the next store of value, before Ruffer’s revelation, the likes of MicroStrategy, Black Rock, PayPal, Grayscale, and several other publically traded companies have already realized the potential in Bitcoin where some see its as the new inflation hedge while others as the next treasury reserve asset.
The current bull rally of bitcoin has seen the top cryptocurrency more than double its previous all-time high of 2017 mainly because of the institutional buyers. Many belive the list of institutions is only going to grow further primarily because of its scarcity and decentralization.