Ruffer Investment, an investment management firm based in London, stated that they are reducing their exposure to Gold. The firm has recently revealed that they are allocating 2.5% of its total funds in Bitcoin. According to the announcement, the firm is looking to take advantage of the recent surge in Bitcoin price. Along with this, they are also aiming to diversify their portfolio with Bitcoin. The firm was founded back in 1994 and is having major exposure to global equities along with $20 billion in assets under management.
Recently, it has been seen that Ruffer Investment is quite concerned about the devaluation of the US Dollar and other global currencies. According to the firm, despite being a small investment, they are seeing this to be a potent insurance policy. This is because some of the major global currencies are facing devaluation and are continuing with the same trend. The reason behind this devaluation is the COVID-19 pandemic as it has caused a huge crisis across the world.
The official statement by Ruffer Investment reads:
This is the reason why they are reducing their exposure to Gold and investing in Bitcoin.
It is not only Ruffer Investment as other firms have also announced their exposure in Bitcoin, recently. With this increase in Bitcoin inflows, there has been a significant increase in Gold outflows. In the last few weeks, Gold has seen an outflow of $9 billion. There are claims that most of the Gold outflows are going into the crypto market and especially Bitcoin. Some major investment firms are also showing great interest in Bitcoin and other cryptocurrencies.