Bitcoin (BTC) will always stick to the Proof of Work algorithm. In the picture a Bitcoin on a circuit board.
The demand for Bitcoin from the institutional side has increased massively in the last few months. Now another company has come across Bitcoin and has invested.
Ruffer Investment Company, a London based investment management firm, has announced that it has invested 2.5% of its portfolio in Bitcoin.
Bitcoin as a hedge against inflation
Ruffer LLP’s fund says they have more than $ 620 million in assets under management. Accordingly, the invested sum corresponds to approximately 15 million USD.
We see this as a small but powerful insurance policy against the ongoing devaluation of the world’s major currencies.
Bitcoin diversifies the company’s (much larger) investments in gold and inflation-linked bonds, and acts as a hedge against some of the currency and market risks we see.
They took this move recently in November „after reducing the company’s exposure to gold,“ calling it „a primarily defensive move.“
That makes them one of the largest known UK institutional investors to have exposure to Bitcoin.
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Portfolio diversification with BTC
This announcement, made in a performance update and manager comment letter, says that the new allocation to the digital currency was made following a recent inclusion, a specialist manager appointed within the Ruffer Multi-Strategies Fund .
The name of the new specialist is not mentioned, but it could hint at a potential new strategy for the publicly traded investment management firm, which is one of the first to allocate Bitcoin in its portfolio.
This follows increased interest from institutional investors after numerous studies concluded that Bitcoin can act as a diversifier and hedge. This shows that the risk-adjusted portfolio returns increase with the addition of Bitcoin.
The interest of institutional investors is not diminishing. Almost every week there are reports from hedge funds, insurance companies and other companies that have now invested in Bitcoin.
It’s just the beginning of a long journey. Right now, all big investors are still pioneers and paving the way for big investments. If you want to keep up in the digital age, you can no longer ignore Bitcoin.