Bitcoin returns: Ruffer makes US$750 million in two months
Investment firm Ruffer put out feelers about Bitcoin just two months ago and is already announcing a partial exit from its entry – for good reason.
Whether for risk diversification or asset protection, Bitcoin is making its way into institutional investors‘ portfolios. Hardly any investor can still ignore Bitcoin on Cryptosoft as an asset class. Not only small investors have achieved immense returns with BTC. Institutional investors who got in before the recent bull run are also rubbing their hands.
Ruffer takes profits
UK investment firm Ruffer has caught this opportune moment. As BTC-ECHO reported, Ruffer invested around $600 million, or 2.5 percent of its portfolio, in bitcoin last November. The investment firm surprisingly explained the investment as a „defensive move“ in a statement at the time and liquidated gold positions in favour of bitcoin.
The strategy worked. The BTC price has more than doubled since then. The performance now prompted Ruffer to offload a portion and realise it as a profit. Ruffer’s investment director, Duncan MacInnes, told Telegraph that just under half of the investment has been liquidated. As a result, the company is pocketing a profit of $650 million. In addition, the profit margin on the remaining 700 million US dollar investment is 750 million US dollars. Not the worst balance sheet after only two months.
MacInnes is nevertheless „surprised at how well it has performed and how quickly“. When the shift from gold to bitcoin was initiated, „no immediate fireworks were expected“. The opposite was to happen. The fact that Ruffer is taking a portion as profit is by no means to be understood as a retreat, on the contrary. According to MacInnes, „the economic environment for Bitcoin could not be better at the moment“.
Bitcoin Funds: A Place to Go for the „Big Ones“
The Ruffer example shows: BTC demand among institutional investors is on the rise. Consequently, crypto funds are seeing a brisk influx of wealthy investors. Grayscale, still the largest asset manager for digital assets, announced only on 2 February the purchase of another 7,756 BTC for more than 255 million US dollars. This brings the Grayscale Bitcoin Trust (GBTC) to 616,558 bitcoin, growing to 3 percent of BTC in circulation, according to the portal Bitcoin Treasuries.
Grayscale’s success story is finally sparking covetousness. With CrossTower, BlockFi and Valkyrie Digital Assets, a number of potential crypto-fund managers are digging in their heels. The CrossTower Bitcoin Funds is to be opened to investors at the end of February. Unlike the Grayscale Bitcoin Trust, there is to be no minimum term for investors. The management fee of 60 basis points is also around 1.4 per cent lower than GBTC’s fees. With a starting capital of 20 million US dollars, the CrossTower Bitcoin Funds, which is only accessible to accredited investors, is a comparatively small fund.