Fun

Multibillion Dollar Fund Manager Ruffer Sees Long Trend of Institutional Bitcoin Adoption

News Feed - 2021-01-21 10:01:00

Multibillion Dollar Fund Manager Ruffer Sees Long Trend of Institutional Bitcoin Adoption


British investment management firm Ruffer has revealed that its bitcoin holdings now account for about 3% of its entire portfolio of approximately $29 billion.The firm believes that we are “at the foothills of a long trend of institutional adoption and financialization of bitcoin.” A Long Trend of Institutional Bitcoin Adoption


Ruffer provided an update on the firm’s bitcoin investment this week in its Investment Manager’s Review for the period ending Dec. 31. The firm wrote: We gained our bitcoin exposure via the Ruffer Multi Strategies Fund and two proxy equities in Microstrategy and Galaxy Digital. At the period end the combined exposure of these was just over 3%.


The firm noted that “In the short period since investing both stocks are up more than 100% and bitcoin is up 90%.”


On its website, Ruffer declared that its assets under management as of Dec. 31 was £21 billion (approximately $29 billion). A 3% allocation would mean the firm’s bitcoin holdings are now worth about £630 million ($861 million). Some media outlets reported that Ruffer’s bitcoin exposure now stands at 1 billion GBP ($1.4 billion). However, a Ruffer spokesperson confirmed to news.Bitcoin.com that the firm does not recognize that estimate.


Ruffer disclosed its bitcoin purchase of £550 million ($750 million) in November, which was initially 2.5% of the firm’s entire portfolio.


“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,” Ruffer detailed, adding: Due 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.


While acknowledging the risks associated with bitcoin, Ruffer also sees growing signs of its increased adoption, which the firm believes will have a significant impact on the price of the cryptocurrency.



“Think of bitcoin’s bad reputation as a risk premium – as we move through the process of normalization, regulation, and institutionalization, the compression of this premium can have a dramatic effect on the price,” Ruffer noted. “If we are wrong, bitcoin will return to the shadows and we will lose money – this explains why we have kept the position size small but meaningful.”


Ruffer’s chairman, Jonathan Ruffer, said last week that the firm’s announcement regarding its bitcoin exposure “produced a smattering of responses.” He explained: Our underlying reasoning is that bitcoin is becoming a challenger to gold’s standing as the one supra-currency, the thing to own when fiat currencies are kerplunked.


The chairman explained that his firm has “done much work on assessing the danger” of investing in bitcoin, “watching it for a longish time.” His firm came to a conclusion that “it is a unique beast as an emerging store of value, blending some of the benefits of technology and gold,” emphasizing, “Yes, it is a seemingly non-sensical asset – but one that makes absolute sense for how we see the world.”


What do you think about Ruffer’s bitcoin investment strategy? Let us know in the comments section below. Bitcoin Now the Most Crowded Trade – Labeled a "Bubble" in Bank of America Survey MARKETS AND PRICES | 16 hours ago Demand for Crypto Soars: Bitcoin Funds Break Records, Goldman Sachs Wants In MARKETS AND PRICES | 3 days ago Tags in this story 1 billion, Bitcoin, BTC, fund manager, hold bitcoin, institutional adoption, institutional investors, investment management, reserve currency, ruffer, Treasury


Image Credits: Shutterstock, Pixabay, Wiki Commons Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Moon or doom: Why do so many crypto startups fail?
Stephen Katte11 hours agoMoon or doom: Why do so many crypto startups fail?Crypto startups often fail in droves, with some estimates claiming upward of 95% go out of business, but it’s not always clear why.377 Total v
Crypto must adapt to laws, not the other way around — John Reed Stark
Ana Paula Pereira6 hours agoCrypto must adapt to laws, not the other way around — John Reed StarkFormer SEC official John Reed Stark has criticized claims that the agency is “regulating by enforcement” in a hearing
‘Baby AGI’ could be a reality in early 2025: SingularityNET founder
Andrew Fenton8 hours ago‘Baby AGI’ could be a reality in early 2025: SingularityNET founderThe “complete toolset” to making the precursor to a fully functioning Artificial General Intelligence might be only about
The Sandbox Partners With a Myriad of Hong Kong Luminaries, Plans to Launch Metaverse ‘Mega City’
The Sandbox Partners With a Myriad of Hong Kong Luminaries, Plans to Launch Metaverse "Mega City" The Animoca Brands subsidiary and blockchain-based virtual world, The Sandbox, has
Bitcoin and Ether lead $17.8B crypto inflows
Zoltan Vardai14 hours agoBitcoin and Ether lead $17.8B crypto inflowsBitcoin saw its fifth-largest week of inflows on record, helping it recapture the $60,000 mark, while Ether inflows took second place in anticipation o
Bitcoin Cash (BCH) Looks Ready To Climb After A Strong Price Rebound
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Best Altcoins to Buy Now as Contracting Supply Set to Push Bitcoin past $200K by the End of 2025
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Ethereum Spot ETFs Outshine Bitcoin Counterparts With Double Market Inflows – Details
Este artículo también está disponible en español. The Ethereum Spot ETFs began February 2025 on a strong positive note, recording net inflows double the size in the Bitco
In Response to Bitcoin, Central Bank of Brazil Presents Instant Payment System Pix
In Response to Bitcoin, Central Bank of Brazil Presents Instant Payment System Pix Banco Central do Brasil has started testing a new payment network with the promise to offer Bra
Microsoft Unveils Platform for Minting Enterprise-Ready Crypto Tokens
Microsoft wants building blockchain tokens in the cloud to be as easy as plugging in a printer. So says Marley‌ ‌Gray, principal architect at ‌Microsoft, following the announc
S2F Hopium: Report and Twitter Critics Find Flaws With Bitcoin’s Stock-to-Flow Ratio
S2F Hopium: Report and Twitter Critics Find Flaws With Bitcoin"s Stock-to-Flow RatioIn mid-April, news.Bitcoin.com researched the popular stock-to-flow (S2F), which shows the price
Crypto Dominates as Payment Method for Remote Workers in Latam
Crypto Dominates as Payment Method for Remote Workers in Latam Most remote workers in Latam prefer to get paid in crypto, according to the latest report from the Deel Lab for Globa