Ruffer Investment Pockets $750M In Bitcoin Profits
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Ruffer, an investment management firm with over $27 billion AUM, confirmed that they had made more than $750 million in profits.
The profit is likely to be even higher after Bitcoin’s price went up higher over the weekend. Duncan MacInnes, the Investment Director of Ruffer Investment Company, said about this uptick in profits:
“We’ve been surprised by how well it has done and how quickly. We did not expect immediate fireworks."
Details From Ruffer’s Initial Investments
In December 2020, Ruffer Investment revealed that their overall exposure to Bitcoin was around 2.7% of their assets under management, roughly equivalent to 45,000 BTC. Ruffer primarily made this investment to hedge their risks against "some of the risks that we see in a fragile monetary system and distorted financial markets."
Recently, MacInnes revealed:
“The 2.5pc allocation we made in November across all our funds, which totaled around $600m. This has more than doubled so we decided to take out our ‘book cost’ and take $650m in profits. We still have around $700m left in and are currently up by $750m overall.”
The price of BTC recently jumped by more than 20% after Tesla founder and richest man of earth, Elon Musk, added “#Bitcoin” to his Twitter biography.
Bitcoin To Get More Institution Investors?
Bitcoin has been getting a lot of attention from institutional investors like MicroStrategy, Blackrock, and, of course, Ruffer. MacInnes revealed some behind the scenes details on how the firm eventually invested in the premier cryptocurrency.
“We have been following Bitcoin’s rise for a few years. Back in 2017 we were very skeptical and I remember laughing in meetings at it all at the time. But in 2020 everything has changed – the economic environment for Bitcoin right now could not be better. We are seeing negative interest rates and bond yields everywhere. We have seen the war on cash ramping up because of the pandemic. At the same time, everything is going digital – our lives are far more digital than a year ago.”
MacInnes now expects a huge influx of institutional investors:
"There are now proper regulated institutions buying in too. People are desperate for alternative safe haven assets and Bitcoin is like a digital gold. We are at the foothills of a long upward trend in its institutionalization.”