The asset manager company Ruffer has announced a 2.5% allocation in Bitcoin (BTC). In a recent announcement made by the company, they informed that they have reduced their exposure to gold. At the moment, the exposure to Bitcoin is equivalent to 2.5% of their portfolio.
Ruffer Invests in Bitcoin
In the official announcement made by the company, they explain that this is a small but potent insurance policy against the devaluation of currencies around the world. It is worth taking into consideration that due to the COVID-19 crisis experienced this year, countries printed large amounts of money.
Both the European Union (EU) and the United States decided to print banknotes to help the economy. However, this is clearly going to have a negative impact on the perception of people and companies regarding fiat currencies.
Ruffer said in the recently released report:
“The 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.”
Ruffer has also explained that Bitcoin can be a good way to diversify their assets. As the asset management firm explains, most of their funds are currently invested in inflation-linked bonds and gold.
“Bitcoin diversifies the company’s (much larger) investments in gold and inflation-linked bonds, and acts as a hedge to some of the monetary and market risks that we see,” wrote Ruffer.
This is just a very important step for the cryptocurrency market. In recent months, several companies have been investing millions of dollars in BItcoin. This includes MicroStrategy, Square and MassMutual. These investments have definitely helped Bitcoin move towards its all-time high.
It is worth pointing out that in recent months, gold has decoupled from Bitcoin. This could also suggest a reallocation of funds from gold to BTC from large players. In the future, we could see more firms and companies invest in Bitcoin so as to diversify their portfolios.
However, Bitcoin couldn’t still surpass the $20,000 barrier. The region close to $19,400 is offering resistance for BTC to continue moving higher. Experts consider that the longer the price remains at these levels, the higher the market will move once it is able to break the resistance levels.
At the time of writing this article, Bitcoin is being traded around $19,400 and it has a market valuation of $360 billion.