Asset management company Ruffer made more than $1 billion in profit from a $600 million bitcoin investment made in November 2020.
speak eraThe investment director of London asset management company Hamish Baillie revealed that Ruffer ended his Bitcoin position in April with a profit of more than $1.1 billion:
“When the price doubled, we made some profits for our customers in December and early January. We actively managed our positions, and by the time we sold the last batch in April, the total profit was just over $1.1 billion.”
Baillie claimed that Ruffer became one of the first fund managers to buy BTC, which is a rare short-term investment for the company. At the time of investment, the price of Bitcoin has already exceeded $15,000 and is pushing higher to test the all-time high of close to $20,000 set in 2017.
The investment director attributed Bitcoin’s parabolic price increase at the end of 2020 to the U.S. pandemic blockade and stimulus spending. He said that part of the reason the company sold its shares was because young investors would not spend so much time trading cryptocurrencies because the lockdown was about to end.
The company has transferred its profits from BTC transactions to other “protective” assets, such as government bonds linked to inflation. However, Baillie believes that major financial institutions including Ruffer and Goldman Sachs will continue to buy Bitcoin, and said that another purchase “will certainly not be off the menu”:
“If you have a multi-asset strategy, things that behave in different ways are really helpful. If all the different assets change in the same dynamics, then multi-asset is meaningless.”
Ruffer is not the only large financial institution involved in cryptocurrency. Its data comes from Bitcointreasuries.org It shows that 36 listed companies currently hold BTC on their balance sheets.
Currently only 6% or 16% of publicly traded companies invest in Bitcoin In their place, Including Nexon, Meitu, and Seetee. The top three holders-MicroStrategy, Tesla and Square-sit on BTC worth $5.2 billion.