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Ruffer is open to making additional Bitcoin deals in the future after gaining $1 billion in less than six months.
Ruffer, an asset manager, has gained by more than $1 billion from a $600 million Bitcoin investment made in November 2020.
Speaking to The Times, investment director at the London-based asset management firm, Hamish Baillie, revealed that Ruffer closed out its Bitcoin position for more than $1.1 billion in profit during April:
“When the price doubled we took some profits for our clients in December and early January. We actively managed the position and by the time we sold the last tranche in April the total profit was slightly more than $1.1 billion.”
According to Baillie, Ruffer was one of the first fund managers to purchase BTC in what was an uncommon short-term investment for the organisation. At the time of the investment, Bitcoin’s price had surpassed $15,000 and was on its way to testing the then-all-time highs of $20,000 achieved in 2017.
The investment director ascribed Bitcoin’s late 2020 parabolic price increase on the United States’ pandemic lockdown and stimulus disbursements. He stated that the corporation liquidated its assets in part because younger investors would not be spending as much time trading cryptocurrency now that lockdowns are no longer in effect.
The firm has moved the profits it made on the BTC trade into other “protective” assets such as inflation-linked government bonds. However, Baillie is confident that major financial institutions, including Ruffer and Goldman Sachs, will continue to buy Bitcoin, stating that another purchase is “certainly not off the menu:”
“If you have a multi-asset strategy then things that behave in different ways are really helpful. There’s no point being multi-asset if all your different assets move with the same dynamics.”
Ruffer is not the only large financial institution that has been dabbling in crypto, with data from Bitcointreasuries.org suggesting that 36 publicly traded companies currently hold BTC on their balance sheet.
Only six, or 16 percent, of publicly listed companies that have invested in Bitcoin are now losing money, including Nexon, Meitu, and Seetee. MicroStrategy, Tesla, and Square are the top three holders, with a combined holding of $5.2 billion in BTC.