British asset management firm Ruffer reportedly said its bitcoin investment has generated about $1.1 billion in profit. The firm says bitcoin has been â€œa wonderful store of valueâ€ and it is still optimistic about the cryptocurrency in the long term.
Ruffer Profits $1.1 Billion From Bitcoin Investment
London-based asset management firm Ruffer revealed that it made $1.1 billion in profit from its bitcoin investment in five months, The Sunday Times reported on June 6. The firm has about Â£22.4 billion ($32 billion) under management as of April 30.
Hamish Baillie, an investment director at Ruffer, said the asset management firm initially invested about $600 million in bitcoin in November last year when the price of BTC was below $20,000. The director detailed:
Baillie explained that stimulus checks have fueled some demand for cryptocurrencies, noting that younger peopleâ€™s interest in them could falter as lockdowns end and economies reopen.
The investment director expects institutions to keep buying BTC for their portfolios and embrace the cryptocurrency as an alternative haven asset.
Regarding whether Ruffer will buy more bitcoin, the director said that it is â€œcertainly not off the menu.â€ Moreover, he called out â€œhyperbole and misinformationâ€ surrounding bitcoinâ€™s energy consumption. He also pointed out bitcoinâ€™s â€œhuge social benefitsâ€ in countries such as Venezuela. Baillie opined:
Ruffer previously explained that its BTC investment â€œdiversifies the companyâ€™s investments in gold and inflation-linked bonds, and acts as a hedge to some of the monetary and market risks that we see.â€ The firm further noted: â€œDue to zero interest rates the investment world is desperate for new safe-havens and uncorrelated assets. We think we are relatively early to this, at the foothills of a long trend of institutional adoption and financialisation of bitcoin.â€
A spokesperson for Ruffer was quoted by Reuters on Tuesday as saying:
What do you think about Rufferâ€™s bitcoin strategy? Let us know in the comments section below.
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