British asset management firm Ruffer has reportedly said that its bitcoin investment has brought in profits of around $1.1 billion. The firm says that bitcoin has been “an amazing store of value” and it is still optimistic about the cryptocurrency in the long term.
Raffer makes $1.1 billion profit from bitcoin investment
London-based asset management firm Ruffer revealed that it made a profit of $1.1 billion from its bitcoin investments in five months, as The Sunday Times reported on June 6. The firm has approximately £22.4 billion ($32 billion) under management as of 30 April.
Hamish Bailey, an investment director at Ruffer, initially said the asset management firm Investment In November of last year bitcoin was worth about $600 million when B T c was less than $20,000. Director Detailed:
When the price doubled, we took some profits for our clients in December and early January. We actively managed the position and by the time we sold the last tranche in April, the total profit was a little over $1.1 billion.
Bailey explained that stimulus checks have fueled some demand for cryptocurrencies, noting that young people’s interest in them may falter once the lockdown ends and economies reopen.
Investment director expects institutions to keep buying B T c Embrace cryptocurrency as an alternative haven asset for your portfolio.
Regarding whether Raffer will buy more bitcoin, the director said that it is “definitely not off the menu.” In addition, he called “exaggerated and misinformation” about bitcoin’s energy consumption. He also pointed to the “huge social benefits” of bitcoin in countries such as Venezuela. Bailey said:
It has been an amazing store of value.
rough first Explained that its B T c The investment “diversifies the company’s investments in gold and inflation-linked bonds, and serves as a hedge against some of the monetary and market risks we see.” The firm continued: “The investment world is desperate for new safe havens and uncorrelated assets due to zero interest rates. We think we are relatively early for this, at the foot of the long trend of institutional adoption and financialization of bitcoin.
A spokesperson for Ruffer was quoted by Reuters on Tuesday as saying:
For a long time, we are interested in digital assets and their role in protecting real money. In the short term, after the sharp rise in bitcoin price, we feel that bitcoin is showing more risk.
What do you think about Raffer’s bitcoin strategy? Let us know in the comments section below.
image credit: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell any products, services, or companies, 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 alleged to be caused by or in connection with the use or reliance on any materials, goods or services mentioned in this article.