Ruffer’s Bitcoin Adventure Begins
In what can only be described as a stunning flash in the pan, Ruffer Investment Management from the UK has managed to wrangle over $750 million in profits from Bitcoin, and they did it all in under two months! The firm dipped its toe into the crypto waters back in November 2020, allocating about 2.5% of its assets—roughly $600 million—into Bitcoin (BTC). What followed was nothing short of a crypto party as Bitcoin soared past the $20,000 mark and rocketed to a dizzying all-time high of over $42,000 by January.
Taking Profits: Ruffer’s Strategic Retreat
However, instead of keeping all those digital coins in their vault, Ruffer decided to take a more pragmatic approach. Co-manager Duncan MacInnes revealed that the firm sold roughly half of its Bitcoin holdings. “We took out our ‘book cost’ and pocketed about $650 million in profits,” he said. With around $700 million still in play, Ruffer is sitting pretty with a total gain of approximately $750 million overall. Not too shabby for a couple of months of cryptocurrency love!
From Skepticism to Strategic Investment
Can you believe Ruffer was once cautious about dabbling in Bitcoin? Back in 2017, they were skeptical, considering Bitcoin more of a wild west than a serious investment. However, the firm has since changed its tune. MacInnes pointed out how many investors are now turning towards digital solutions as a result of the pandemic. Retail investors, in particular, are fiercely searching for alternative safe havens, and institutions can’t seem to get enough of this crypto asset.
Bitcoin as a Defensive Asset
When Ruffer first started eyeing Bitcoin, it did so as a move to protect against the erosion of fiat currencies. They decided to cut back on gold exposure and allocate a significant chunk of their assets into Bitcoin. Chairman Jonathan Ruffer described Bitcoin as a “seemingly non-sensical asset, but one that makes absolute sense for how we see the world.” It’s a fascinating perspective, especially during times of economic uncertainty.
The Current Landscape: Bitcoin on the Rise
As of the latest buzz, Bitcoin is trading at $36,816, enjoying a delightful 6% jump in the last 24 hours. It appears that the cryptocurrency’s star is still shining brightly, bolstered by Ruffer’s newly minted fortunes and the increasing interest from both retail and institutional investors. The economic environment appears hospitable for Bitcoin, and who knows? This rollercoaster might just be at the start of an even crazier ride.
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