The asset-management firm Ruffer Investment did not expect heightened attention to Bitcoin from institutional investors. This is stated in the firm’s 12-month report.
In November 2020, Ruffer Investment bought Bitcoin for $600 million. However, by April it had already sold the asset, earning more than $1.1 billion.
“Bitcoin still has the potential to live up to its promise, but the market has shown many signs of empty pricing — retail speculation, excessive leverage, Coinbase IPO, Tom Brady with laser eyes, Dogecoin, Elon Musk’s Saturday Night Live appearance, NFTs at $60 million, and so on,” the document said.
The representatives of the firm said that their investments in digital currencies and related companies, including MicroStrategy and Galaxy Digital, generated notable profits during the reporting period. However, current market conditions do not allow them to use Bitcoin for portfolio diversification:
“At least in the near term, Bitcoin has shown signs of a risky, speculative asset and, accordingly, no longer serves as a safe-haven asset.”
Earlier, in Ruffer Investment, they attributed the sale of digital gold to a ‘speculative fever, which swept the cryptocurrency market’.
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