The U.K.-based asset management firm, Ruffer Investments Co Ltd. bought $600 million worth of Bitcoin at the time in November 2020. Two months later, the investment company sold the majority of its Bitcoin stake after Elon Musk set the price of the cryptocurrency soaring.
Ruffer Investment sold some of its Bitcoin holdings, taking profits of more than double of its investments. The multi-billion dollar investment management firm sold about 40% of the bitcoin bought last November, profiting around $650 million.
Since selling its Bitcoin stake, Ruffer was left with about $700million invested or around 3% of its total assets.
The investment company took to selling its BTC holdings after Elon Musk’s electric car manufacturing company Tesla announced a $1.5 billion purchase of BTC in February, even accepting the cryptocurrency as a payment method.
Sources closed to Ruffer described this as a sign of the BTC bubble.
For instance, Hector McNeil, founder of robot fund company HANetf, said:
'Elon tweets a lot of things and he's also right about a lot of things. What I've seen over the past six months is how mainstream Bitcoin is becoming. For every investor that pulls back, ten more are getting involved.'
Analysts are even saying on the surging price of Dogecoin is a sign of a bubble in the cryptocurrency market, adding it could burst once whales start cashing out leading small investors to burn their pockets.
Ruffer described that the rationale for buying BTC was increased interest from other investment giants such as Fidelity and BlackRock including payment companies such as Mastercard and PayPal. For instance, earlier this year, Ruffer said:
“Due to zero interest rates the investment world is desperate for new safe havens and uncorrelated assets.”
The investment company insured its BTC holdings through Coinbase crypto exchange.