Ruffer Investment Management made over $750 million in profits from its investment in Bitcoin (BTC). The London-based financial firm managed to make a huge return in just two months.
Although the financial firm invested in Bitcoin a bit late, it made substantial profits from the December rally when the cryptocurrency reached as much as $40,000. Ruffer bought its first batch of Bitcoin in November 2020, when the cryptocurrency was around $17,000. According to CoinDesk, Ruffer invested 2.5% out of its $27 billion portfolios in BTC during that period.
“We’ve been surprised by how well it has done and how quickly. We did not expect immediate fireworks.” Duncan MacInnes, co-manager of Ruffer Investment told Telegraph Money.
MacInnes said that the company made a 2.5% allocation across all funds, costing around $600 million. However, Ruffer sold a big amount of BTC when the cryptocurrency’s price reached $40,000. The financial company decided to sell, as BTC was leading a rally — making $650 million in profit. Ruffer currently has $700 million left in Bitcoin.
“We still have around $700 million left in and are currently up by $750 million overall,” said MacInnes.
Ruffer was skeptical about BTC
MacInnes admitted that Ruffer joined the BTC party a bit late. Nevertheless, MacInnes said that his company was closely following news about the cryptocurrency. Furthermore, Ruffer was always skeptical about the digital token and according to MacInnes, the company wasn’t expecting a quick return on investment from BTC.
“The company is seeing negative interest rates and bond yields everywhere. We’ve seen the war on cash ramping up because of the pandemic. At the same time, everything is going digital – our lives are far more digital than a year ago,” said MacInnes.
In conclusion, Ruffer is one of the largest financial institutions to show interest in cryptocurrency. The interest showcased by financial firms helped push the BTC price further. However, the digital token still needs more guarantees to be more sustainable in the future.
As of this writing, Bitcoin is trading at $37,151 with a coin market capitalization of $690 million.
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