Ruffer LLP, an investment management firm that operates from London, recently shared information regarding the more than $1 billion dollar profits gained from an investment in the world’s number one cryptocurrency.
According to one of the firm’s investment directors, Hashim Bailey, the company initially invested around 2.5% of funds under their management – an amount of about $600 million – into the most capitalised digital asset.
“Our exposure to bitcoin is currently equivalent to around 2.5% of the portfolio. We see this as a small but potent insurance policy against the continuing devaluation of the world’s major currencies,” Bailey told the The Times.
The short lived run at BTC “hodling” began in November 2020 when the world economy struggled for breathe while in the clutches of a viral pandemic – to eventually liquidating the last of their investment in April.
“When the price doubled we took some profits for our clients in December and early January. We actively managed the position and by the time we sold the last tranche in April the total profit was slightly more than $1.1 billion.” Bailey said.
A Future In Bitcoin
For Baillie, investing in digital assets like Bitcoin can play a significant role in hedging one’s investments.
“If you have a multi-asset strategy then things that behave in different ways are really helpful. There’s no point being multi-asset if all your different assets move with the same dynamics.” Baillie said. He also hinted at continued interest in the digital assets market, stating that future investment is, “certainly not off the menu”
Even in the face of harsh criticism of Bitcoin’s energy intensive mining process, Baillie still sees a lot of potential upside.
“There is a lot of hyperbole and misinformation out there when it comes to bitcoin’s carbon footprint,” Baillie said before adding that, “Probably somewhere between 40 per cent and 70 per cent of the electricity used is coming from renewable sources. The other thing is the huge social benefits. [Western] currencies have been relatively stable, but imagine if you’d held bitcoin for the last ten years and you lived in Venezuela. It’s been a wonderful store of value outside the monetary system.”
It is probably also worth noting that, “Bitcoin uses less electricity than the gaming industry.” as per Hashim Baillie.
