The British Asset Manager Ruffer, and Citi along with it, are predicting the long-term adoption of Bitcoin by the traditional financial institutions. In addition to this, Citigroup has revealed that the oldest cryptocurrency could be at the tipping point of usage
Ruffer and Citi Predicts Breakout Moment for Bitcoin
Ruffer, the British Asset Manager which handles £21bn of investor’s money revealed in November last year that they have taken a small position in the digital asset. Moreover, the company released a statement on Monday that read:
“We think we are relatively early to this, at the foothills of a long trend of institutional adoption and financialization of bitcoin.”
They further stated:
“Think of bitcoin’s bad reputation as a risk premium – as we move through the process of normalization, regulation, and institutionalization, the compression of this premium can have a dramatic effect on the price.”
“If we are wrong, bitcoin will return to the shadows and we will lose money – this explains why we have kept the position size small but meaningful.”
According to reports, Ruffer has invested over 3% of its total assets worth around £600m into the cryptocurrency.
Along with the direct exposure to the cryptocurrency, Ruffer has also an indirect exposure through shareholdings in a data company that has an investment worth $3bn in Bitcoin named Microstrategy.
Corporate Investments in BTC
Bitcoin has recently witnessed a huge investment from some major corporates like Square and Tesla. Ruffer is one of the various major corporates to reveal investments in BTC. Citi, on the other hand, revealed on Monday in a different research note that Bitcoin could be at the beginning of a huge transformation of crypto into the mainstream.
The investment bank further added to its statement that the oldest cryptocurrency could become the currency for international trade. Over the past 4-5 months, the largest cryptocurrency has surged over 400% and has managed to hit an all-time high of $46,996.38.