Institutional investors ‘ purchases of Bitcoin (BTC) continue unabated. After companies such as MicroStrategy, Square and MassMutual, Ruffer Investment company, whose parent company it is affiliated with, has reached a value of $ 26bn (£20bn), has been announced to buy Bitcoin.
Another corporate boost to bitcoin
In a post on the subject, renowned economist Alex Krüger noted that Ruffer made approximately $ 15 million worth of Bitcoin purchases. Ruffer, a traditional asset management company, has chosen to rate 2.5% of its portfolio as Bitcoin for December 2020.
The total value of the assets managed by the company is $ 620 million, indicating that this investment corresponds to approximately $ 15 million.
In a December 15 post released by the company to investors, the Bitcoin announcement was made. Ruffer Investment Company describes Bitcoin investment as:
“This (investment) was made primarily as a defensive move, after the company reduced its gold investment in November.”
Ruffer also reveals that by November 2020, gold investment is going to decrease and BTC is being bought. Bitcoin is seen as a “small but effective” insurance move against the devaluation of the world’s leading fiat currencies, the report said, implying that it also has advantages over investing in gold. In fact, JPMorgan analysts recently emphasized that gold would suffer a lot because of Bitcoin. Gold investors, on the other hand, have begun to switch to BTC, especially in recent months.
Ruffer concludes the report by stating that the leading cryptocurrency will also be protected against certain financial and market-related risks.
Economist Alex Krüger, on the other hand, explained exactly what this purchase actually means. Krüger pointed out that institutional investors are not buying BTC to sell in the short term. According to the famous name, these purchases actually indicate that long-awaited corporate money is coming. Although Ruffer made a $ 15 million purchase, the element that this represents for the institutional investor is certainly very positive for BTC in the long term.