Correction: Ruffer has clarified that its Bitcoin allocation is 2.5% of its total assets under management and tells Coindesk it now owns more than $744 million worth of BTC.
London-based investment firm Ruffer is allocating a portion of its asset portfolio to Bitcoin as a defense against currency devaluation.
The company, which manages about $27 billion in assets for individuals, families, pension funds, and charities, has set aside 2.5% of its multi-strategies fund, or roughly $15 million dollars, to invest in BTC.
In a note to shareholders, Ruffer describes the move as an insurance policy against inflated fiat currencies, and as an added diversification alongside gold.
“This is primarily a defensive move, one made in November after reducing the company’s exposure to gold. The exposure to Bitcoin is currently equivalent to around 2.5% of the portfolio.
We see this as a small but potent insurance policy against the continuing 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 to some of the monetary and market risks that we see.”
Institutional investments in Bitcoin have been gaining momentum over the year, with companies like MicroStrategy, MassMutual, and PayPal joining the space.
In addition, a number of large investors may be ditching gold for Bitcoin, according to a recent report from JP Morgan.
The financial giant cites record flows into world’s the largest crypto asset fund while gold ETFs are simultaneously on the decline.
“What makes the October flow trajectory for the Grayscale Bitcoin Trust even more impressive is its contrast with the equivalent flow trajectory for gold ETFs, which overall saw modest outflows since mid-October.
This contrast lends support to the idea that some investors that previously invested in gold ETFs such as family offices, may be looking at Bitcoin as an alternative to gold.”
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