Bitcoin over Gold, London Investment Manager Reveals BTC Exposure

A London-based investment management firm, Ruffer Investment announced that it has added Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term as the latest asset to reduce its gold exposure. The firm revealed that it has allocated approximately 2.5% of its total funds to Bitcoin.

According to the official announcement, the recent exposure to Bitcoin is a move to diversify the company’s portfolio in order to reduce dependence on gold. The company plans to take advantage of the recent boom in BTC price.

Founded in 1994, the investment management firm has major exposure to global equities. The company has over $20 billion in assets under management with approximately 6,600 clients around the world. Ruffer expressed concerns regarding the recent devaluation of global currencies including the US Dollar.

“Our 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. 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,” the company said in an official statement on Tuesday.

Bitcoin Inflow

In recent months, several investment management companies in Wall Street announced exposure in Bitcoin and other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. While Bitcoin is gaining traction, Gold has seen significant outflows in the last few months. During the last 4 weeks, gold saw $9 billion in outflows compared to nearly $1.4 billion inflows in Bitcoin-related funds. CoinShares published a report earlier this month and indicated that the total crypto assets under management reached an all-time high of $15 billion in 2020, compared to just $2.57 billion in 2019.

Grayscale, a leading crypto asset management firm has reported record investments in Bitcoin-focused investment products. It seems like a majority of the gold outflows are going into the crypto market and the world’s largest cryptocurrency is benefitting the most.