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- Asset manager Ruffer made a whopping $1 billion in profit
- Ruffer wants to make more Bitcoin trades in the future
- Earned $1B profit from $600M BTC buy in November
Luck favours the brave, and this adage is further reinforced by studying the case of Asset manager Ruffer. Ruffer made a whopping $1 billion in profit after investing $600 million in Bitcoin investment it made during November 2020.
Hamish Baillie, investment director, talked to The Times and revealed that Ruffer ended its Bitcoin venture with a profit to the tune of more than $1.1 billion in profit during April. When the price of BTC almost doubled, Ruffer started selling in December and early January. The last BTC batch was sold in April, and the total profit earned was slightly more than $1.1 billion.
Hamish added that Ruffer was the first fund manager who made the short term investment and bought BTC. When Ruffer invested in Bitcoin, its price was touching $15,000and surging towards nearly $20,000, a record set in 2017.
Role of Pandemic lockdown and stimulus payouts
Dissecting the parabolic price rally of Bitcoin in late 2020, Baillie attributed it to the pandemic lockdown and stimulus payouts in the United States. Ruffer decided to sell its BTC because the pandemic was declining, and young investors would not be spending more time trading cryptocurrency.
Profits channelled into more solid assets
Ruffer has moved the profits made from its BTC venture into more solid assets like inflation-linked government bonds. However, Baille said that BTC trade is here to stay, and major financial institutions like Ruffer and Goldman Sachs will continue to invest in BTC. Baillie confirmed that Ruffer would, if possible, reinvest in the future in BTC.
More entities invest in Bitcoin
Ruffer is not the only financial institution that has invested in BTC. According to Bitcointreasuries.org, more than 36 publicly traded companies currently hold BTC on their balance sheet. Big players are increasingly buying Bitcoin. The latest is Tesla, which has purchased Bitcoins worth millions of dollars. Most of the investment funds hold Bitcoin on behalf of investors, and many companies have bought Bitcoin as a reserve asset. With significant companies jointly investing millions of dollars worth of BTC, the retail interest in Bitcoin has surged to new levels.
In January 2021, inflows into Bitcoin and other crypto investment products hit $1.3 billion, according to asset management firm CoinShares.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
