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London-based investment firm Ruffer is allocating a small but significant percentage of its asset portfolio to Bitcoin as a defense against the currency’s devaluation.
The company, which manages around $ 27 billion in assets for individuals, families, pension funds and charities, has set aside 2.5% of its multi-strategy fund, or roughly $ 15 million, to invest in BTC.
In a note to shareholders, Ruffer describes the move as an insurance policy against inflated fiat currencies and as additional diversification alongside gold.
“This is primarily a defensive move, made in November after reducing the company’s exposure to gold. Exposure to Bitcoin currently equates to around 2.5% of the portfolio.
We see this as a small but powerful insurance policy against the continued devaluation of the world’s major currencies. Bitcoin diversifies the company’s (much larger) investments in inflation-linked gold and bonds, and acts as a hedge for some of the currency 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.
Additionally, 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 the world’s largest crypto fund, while gold ETFs are simultaneously on the decline.
“What makes the October flow path for Grayscale Bitcoin Trust even more impressive is its contrast to the equivalent flow path for gold ETFs, which have generally posted modest outflows since mid-October.
This contrast supports the idea that some investors who previously invested in gold ETFs, such as family offices, may be considering Bitcoin as an alternative to gold. “
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Disclaimer: Opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investment in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl is involved in affiliate marketing.
Featured Image: Shutterstock / Viroj Supornpradit
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