Ruffer Investment Sells its Bitcoin Holdings, Says the BTC Promise is Real

Sahaj  |  Jul 14, 2021

UK-based Ruffer Investment Management is one of the firms that made huge profits while investing in Bitcoin, marking $1.1 billion profit in just five months of investment in BTC. After making some profits in the month of December, Ruffer sold all of its holdings by the end of April when Bitcoin was looked at like a risky asset.

Ruffer Investment Management Says Bitcoin Promise is Real

Duncan MacInnes, the Director of the Ruffer Investment Management firm said that:

“It all has a flavor of the late 1990s. Bitcoin may yet fulfill its potential, peak liquidity coincided with many signs of froth in the short term.”

As seen in the bitcoin price chart, it is still changing hands at the price which is almost half of the all-time high price of Bitcoin.

When Bitcoin reached its top in the first half of the year, many institutional investors booked their profits and sold their BTC holdings, and directed some of their profits in Ethereum. 

Ruffer Investment Management, the firm with a capitalization of 580 million Euros is one of those investors that booked profits from Bitcoin. 

In addition to this, Duncan MacInnes noted that regardless of all the hype during the dot com bubble, the internet did change the world for good and said:

“In 2021, the excitement is in cryptocurrencies and decentralized finance. The promise is real. But so too is the surge in excess liquidity generated by fiscal stimulus and ongoing quantitative easing.”

BTC Has Impressive Risk/Reward Ratio

Criticizing the balanced portfolios and talking about the rise in inflation, Duncan said:

“The implications for conventional balanced portfolios are profound and painful. Bond yields rise, so bond prices fall. Equities de-rate, so equity prices fall. Worse, the two asset classes become positively correlated which is the opposite of the last 40 years. In crypto speak, you get ‘rekt.”

Revealing the short-term capabilities of BTC, he said:

“In the short term at least, bitcoin was exhibiting the characteristics of a risky, speculative asset and therefore no longer fulfilled the role we wanted it for as portfolio protection and diversifying asset. We sold all of our exposure.”

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