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The latest round of Q2 results from Fidelity Investments, the world’s largest asset manager, shows a huge surge in profits from Bitcoin investment. The latest data from the firm shows that the value of cryptocurrencies on its platform rose by more than 800%.
After a couple of years of poor returns, British asset manager Ruffer has won the race for a big payout – registering a $1.1 billion profit from bitcoin. According to filings with U.K. Companies House, the company has set aside a $325 million “bitcoin reserve,” which is to be used to meet bitcoin-related costs. In a statement, Ruffer’s head of investment strategy, David Sottomayor, said that bitcoin is “an asset class that was in our portfolio and it was generated through our portfolio, so we are using our profit to cover the fund’s bitcoin costs.”
Assume you are a British Asset Manager that is in charge of a portfolio of ALTcoins. These are specialized, highly volatile, crypto-assets that have been gaining in popularity after the recent success of Bitcoin and other cryptocurrencies. The investment thesis is that even as Bitcoin and similar assets have been gaining in popularity, the ALTcoins have been gaining in value.
British asset management firm Ruffer said its bitcoin investments have generated about $1.1 billion in profits. The company says bitcoin has been a remarkable store of value, and it remains optimistic about the cryptocurrency in the long term.
Ruffer makes $1.1 billion profit on bitcoin investments
Chris Ruffer is a bitcoin trader, and he is the latest to go to the top of the bitcoin charts. He just made $1.1 billion. Ruffer has been trading bitcoin for about two years, buying and selling the cryptocurrency in a range of countries, including the U.S., Japan, China, and South Korea, where bitcoin has become mainstream.
London-based wealth management firm Ruffer has revealed that it has made $1.1 billion in profits from bitcoin investments in five months, the Sunday Times reported on the 6th, June. On the 30th of April, the company had about 22.4 billion pounds ($32 billion) under management.
Hamish Bailey, chief investment officer at Ruffer, said the asset manager initially invested about $600 million in bitcoin last November when BTC was below $20,000. The director continued: When the price doubled, we saw some profit for our customers in December and early January. We actively managed the position and when we sold the last tranche in April, the total return was just over $1.1 billion. Bailey explained that the stimulus checks have spurred demand for cryptocurrencies, but noted that young people’s interest in them may wane when the freeze ends and the economy rebounds.
The CIO expects institutions to continue to buy BTC for their portfolios and embrace cryptocurrency as a safe alternative investment. As for whether Ruffer will buy more bitcoins, the executive said it’s certainly not out of the question. Moreover, he called the information about bitcoin’s energy consumption exaggerated and inaccurate. He also pointed out the great social benefits of bitcoin in countries like Venezuela. Bailey made his point: It was a big warehouse with valuables. Ruffer previously explained that BTC investments diversify the company’s investments in gold and inflation-linked bonds and serve as a hedge against some of the currency and market risks we see. The company also noted: With interest rates at zero, the investment community is desperate for new safe havens and uncorrelated investments. We believe we are relatively early, at the base of a long trend of institutional adoption and financialization of bitcoin.
A spokesman for Ruffer was quoted by Reuters on Tuesday: In the long term, we remain interested in digital assets and the role they can play in preserving real wealth. In the short term, after the sharp rise in the price of bitcoin, we felt that bitcoin was riskier. What do you think of Ruffer’s bitcoin strategy? Let us know your comments in the section below.
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