Bitcoin (BTC) will always remain at the proof of work algorithm. Pictured is a Bitcoin on a circuit board.
The demand for Bitcoin from the institutional side has increased massively in recent months. Now another company has come across Crypto Investor and invested.
Ruffer Investment Company, a London-based investment management firm has announced it has invested 2.5% of its portfolio in Bitcoin.
Bitcoin as a hedge against inflation
Ruffer LLP’s fund says they have more than $620 million in assets under management. Accordingly, the amount invested is equivalent to about USD 15 million.
We see this as a small but potent insurance policy against the ongoing devaluation of the world’s major currencies.
Bitcoin diversifies the company’s (much larger) investments in gold and inflation-linked bonds, and acts as a hedge against some of the currency and market risks we see.
They made this move recently in November „after reducing the company’s exposure to gold,“ calling it „primarily a defensive move.“
This makes them one of the largest known UK institutional investors to have exposure to Bitcoin.
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Portfolio Diversification with BTC
This announcement, made in a performance update and manager comment letter, says the new allocation to digital currency was made following a recent addition, of a specialist manager appointed within the Ruffer Multi-Strategies Fund.
The name of the new specialist is not mentioned, but it could indicate a potential new strategy for the listed investment management company, which is one of the first to allocate bitcoin in its portfolio.
This follows increased interest from institutional investors after numerous studies concluded that Bitcoin can act as a diversifier and a hedge. This shows that risk-adjusted portfolio returns increase with the addition of Bitcoin.
Institutional investor interest is not waning. Reports are coming in almost weekly from hedge funds, insurance companies and other companies that have now invested in Bitcoin.
It is probably just the beginning of a long journey. Currently, all the big investors are still pioneering and paving the way for big investments. If you want to keep up in the digital age, you can no longer avoid Bitcoin.