Asset manager Ruffer has made over $1 billion in profits from a $600 million bitcoin investment made during November 2020.
talking to many times, investment director at London-based asset management firm, Hamish Bailey, revealed that Raffer closed his bitcoin positions during April for a profit of over $1.1 billion:
“We took some profits for our customers in December and early January when the price doubled. 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 claims that Raffer became one of the first fund managers to buy BTC, a rare short-term investment for the company. At the time of the investment, the price of bitcoin had risen to $15,000 and was pushing to test the all-time high near the $20,000 it set in 2017.
The investment director attributed bitcoin’s parabolic price rally in late 2020 to the pandemic lockdown in the United States and stimulus payments. He said that the company sold its stake partly because young investors will no longer be spending as much time in crypto trading as the lockdown is ending.
The firm has transferred the profits made on the BTC trade to other “protective” assets such as inflation-linked government bonds. However, Bailey is confident that major financial institutions, including Raffer and Goldman Sachs, will continue to buy bitcoin, adding that another purchase is “definitely not off the menu:”
“If you have a multi-asset strategy then having things behave in different ways is really helpful. There is no point in having multi-asset if all your different assets move with the same dynamics.”
Raffer isn’t the only big financial institution dabbling in crypto, whose data bitcointreasuries.org This suggests that 36 publicly traded companies currently hold BTC on their balance sheets.
Only six or 16% of publicly traded companies currently invest in bitcoin. down on their position, which includes Nexon, MeToo and Whistle. The top three holders – Microstrategy, Tesla and Square – sit between them on $5.2 billion worth of BTC.