That’s roughly £ 550 million in BTC, or about $ 746 million at today’s exchange rates. And the popularity of the first cryptocurrency does not end there.
Asset management company Ruffer assures its investors that it remains confident in its «unconventional» investment in Bitcoin. The firm, which manages over $ 20.3 billion in assets and has offices in London and Paris, has announced that it has earmarked 2.5 percent of its separate fund to invest in BTC.
Let’s start with an explanation: Bitcoin is indeed considered an unconventional investment for many popular companies. The cryptocurrency started working in 2009, that is, the asset is new and young. In this regard, most people on the planet have simply not yet had time to figure out how the blockchain works, the rules for conducting transactions and the basics of coin security, which means that the product is at an early stage of its existence.
However, some of the benefits of cryptocurrency are obvious even to beginners. First of all, the Bitcoin network is decentralized, that is, its participants are equal, and it simply will not work to block some unwanted payment. In addition, the maximum number of bitcoins is limited to 21 million, which means that it will not be trite to get more coins. It is the latter fact that makes investors spend hundreds of millions of dollars to buy coins right now.
Ruffer also has access to the main cryptocurrency through MicroStrategy and Galaxy Digital. Recall that business intelligence company MicroStrategy currently holds about $ 2.5 billion in BTC in reserve, and Galaxy Digital has invested about $ 600 million in crypto. This material will acquaint you with the largest investors of the first cryptocurrency represented by well-known companies in more detail.
Who buys Bitcoin
Now that the price of Bitcoin is steadily rising, Ruffer’s management has become even more active in supporting its strategy. Here is a quote from his representatives, in which employees share their vision of the situation. The cue is from Decrypt.
Our rationale has been widely publicized, but in short: we have a track record of using non-traditional assets as defenses in our portfolio. We think we are at the very beginning of the trend of institutional adoption and investment in Bitcoin.
In other words, Ruffer believes Bitcoin will be an excellent bet in case the economic crisis continues. In addition, the main cryptocurrency is likely to show one of the highest levels of profitability as the world wakes up from the damage caused by the coronavirus pandemic. And this is a kind of win-win.
Ruffer CEO Jonathan Raffer said last week that Bitcoin as an asset «seemingly meaningless» but «makes absolute sense from our perspective of the world.» He added that Bitcoin «is becoming a contender for the status of gold as the only currency.»
Raffer’s point is indirectly supported by a recent statement by economist and former Canadian Prime Minister Stephen Harper. This week, he said that Bitcoin, gold or another popular non-traditional asset can really claim to be a replacement for the dollar, but the likelihood of this is extremely small. For this, the United States must lose a significant part of its credibility in the international arena, which will also affect the dollar as a world currency. However, this is only possible in the event of some kind of financial disaster, Harper said.
Yesterday evening it also became known about the filing of documents with the US Securities and Exchange Commission by BlackRock. It is an asset management giant with trillions of dollars in control, according to The Block. And now the company is preliminarily preparing to enter the Bitcoin derivatives market — and this is a serious victory for such a young niche.
We think this year has started off great for Bitcoin. Cryptocurrency is getting into the field of vision of more and more giants — and this is not to mention the work with the coin by PayPal, whose initiative surprised fans of cryptocurrencies at the end of last year.
Apparently, the list of those wishing to interact with BTC will only grow. And since the maximum number of coins is limited, increased attention to cryptocurrency will clearly have a positive effect on its rate.