Ruffer Investment: Bitcoin at the Dawn of Institutional Adoption

British investment company Ruffer Investment, having invested around $744 million in bitcoin, expects growth in institutional adoption of the first cryptocurrency. This is stated in a review dated the end of 2020.

Analysts noted that Ruffer had experience using “unconventional hedging methods.” The company considered digital gold precisely in this capacity.

“We think we are at a relatively early stage, at the foot of a long process of institutional adoption of bitcoin and its development as a financial instrument,” the document says.

In December 2020 the company confirmed that its position in the cryptocurrency accounted for 2.7% of assets under management.

“If we are wrong and bitcoin loses value, we will lose money — that explains why we hold a comparatively small, though fairly notable, position,” analysts noted.

In addition to direct purchases of bitcoins, the British company invested in organisations with assets in the first cryptocurrency. Ruffer owns shares worth £1.14 million (~$1.5 million) of the Nasdaq-listed software provider MicroStrategy — in 2020 the firm purchased a total of 70,470 BTC for $1.12 billion.

Also the company invested £2.17 million (~$2.9 million) in the crypto bank Galaxy Digital headed by Mike Novogratz.

Ruffer Investment portfolio. Data: Ruffer Investment.

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In 2020, institutional investors acquired more than 1 million BTC — 5.57% of the cryptocurrency’s market supply.

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