Ruffer Investments, the British asset management firm, made quite a splash in the crypto industry last year, joining the ranks of institutional investors to enter the market. The firm has now cashed out partially, scoring a significant windfall thanks to Bitcoin’s recent performance.
Ruffer’s Bitcoin Bet Pays Off
This week, Ruffer Investments published its annual review on market performances, confirming that it had sold off some of its Bitcoin holdings. The company, which announced that it had invested 2.5 percent of its $27.5 billion Multi Strategies Fund in December 2020, is now smiling to the bank.
The company explained that it sold off $650 million worth of Bitcoin, making a significant windfall. Ruffer announced a $750 million Bitcoin purchase in November, entering the market when the leading cryptocurrency sold for $19,406 per token. the company appears to have purchased roughly 38,648 BTC at the time.
With Bitcoin now trading at almost twice that, Ruffer appears to have dumped about a little over 50 percent of its Bitcoin portfolio. Speaking on its recent good fortunes, Duncan MacInnes, Ruffer’s investment director, explained that Bitcoin’s performance had surprised the company. While they didn’t expect such gains, they were more than happy to cash in.
Ruffer’s Interest in Bitcoin as Markets Sputter
MacInnes explained that Ruffer had gained exposure to Bitcoin by purchasing units of equities in business intelligence solutions provider MicroStrategy and crypto merchant bank Galaxy Digital. Both firms are two of the crypto industry’s largest institutional investors, with MicroStrategy alone sitting on a Bitcoin stash worth over $1.3 billion.
Seeing their investment pay off big time, Ruffer decided to take back their invested capital and this came up to $650 million in profits. MacInnes explained that Ruffer hasn’t lost interest in Bitcoin, with the firm still holding $750 million in the leading cryptocurrency.
MacInnes also gave his thoughts on why Bitcoin has thus far been able to succeed. The executive explained that excessive money printing from central banks and negative interest rates had put too much pull on economies. While these initiatives have primarily been geared at fighting the coronavirus, they’ve so far had deleterious effects on markets.
Even though the price of Bitcoin has dropped significantly after reaching its new ATH of $42,000, investors remain interested in it. Through the rises and falls, the leading cryptocurrency remains one of the best-performing investment assets available.