British investment company Ruffer Investment Company allocated 2.5% of its portfolio to Bitcoin as a hedge against the depreciation of world currencies. This is stated in a communication to shareholders.
Ruffer noted that the leading cryptocurrency diversifies investments in gold and inflation-linked bonds. The wording in the statement indicates that the funds were earmarked from a separate fund, but the company did not provide clarification.
“Our recent addition, thanks to one of the managers at the Ruffer Multi-Strategies Fund, has become Bitcoin,”
In deciding to buy the cryptocurrency, the firm was guided by two criteria: not to lose money over the next year and to increase clients’ asset values in the long term.
“First and foremost, this is a defensive measure. The Bitcoin stake is currently equivalent to about 2.5% of the portfolio,”
The company manages assets worth £20.3 billion (~$27.3 billion at the time of writing). Ruffer’s market capitalisation is £445.6 million (~$600 million), and net assets total £461.1 million (~$620 million). This means that roughly $15.5 million was allocated to buying Bitcoin.
Source: Ruffer Investment Company Limited.
Earlier, MassMutual, the U.S.-based insurer with assets of $235 billion under management, invested $100 million in Bitcoin.
Analysts at JPMorgan Chase & Co. have suggested that pension funds and other large investors may follow the example of the U.S. firm. This could bring Bitcoin up to $600 billion.
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