Ruffer Asset Management made a $1.1 billion profit by selling bitcoin
CBW -External Analyst
Jun, 07 2021
Ruffer Investment Management a U.K.-based company has made a $1.1 billion profit in just 5 months from investing in bitcoin.
The director of Ruffer investment said that the firm sold its bitcoin as younger people would not be spending so much time in trading. The firm has invested 2.5% of its $27 billion portfolios into bitcoin in November. It took profits before this year as the cryptocurrency more than doubled to around $40,000.
The growth history-
In February, Duncan MacInnes, the co-manager of Ruffer Investment mentioned that the firm had around $700 million left in bitcoin. The company has reported a total profit of $750 million. Ruffer made its bitcoin buying through One River Digital and Coinbase.
Per Hamish Baillie, an investment director at Ruffer, the firm had primarily invested about $600 million in BTC in November 2020. Remarkably, the said trial also makes Ruffle the first fund manager to buy bitcoin. It could only be called a short-term play banking on bitcoin’s infamous yet profitable volatility.
Baillie further stated that financial institutions such as Goldman Sachs and Ruffer will remain to buy bitcoin and propel it to found itself as a mainstream asset within investment portfolios.
Baillie added that capitalizing on bitcoin in the future is “positively not off the menu” for Ruffer. He further stated: “If you have a multi-asset strategy then things that behave in different ways are really helpful. There’s no point being multi-asset if all your different assets move with the same dynamics.”
It happens with the major criticism towards bitcoin is the imaginary high amount of energy it consumes to remain useful. This was the reason why Tesla finished its service that allowed people to buy electric cars by paying in bitcoin. Though, according to Baillie, these worries are overblown.
Baillie stated that “There is a lot of hyperbole and misinformation out there when it comes to bitcoin’s carbon footprint”. “Bitcoin uses less electricity than the gaming industry.”
CBW - External Analyst