A British investment company that has publicly announced one of the biggest ever investment in bitcoin, £500 million, says the new crypto is an emerging store of value.
Jonathan Ruffer (pictured right) of Ruffer Investment has finally detailed their thinking on buying half a billion bitcoin, stating:
“Our underlying reasoning is that bitcoin is becoming a challenger to gold’s standing as the one supra-currency, the thing to own when fiat currencies are kerplunked.
We have done much work on assessing the danger that bitcoin is a wrong’un. We have been watching it for a longish time, and our judgement is that it is a unique beast as an emerging store of value, blending some of the benefits of technology and gold. Yes, it is a seemingly non-sensical asset – but one that makes absolute sense for how we see the world.
The question that followed was: when to make the move? A journey from pirate to president is a continuum, but an investment is a binary event – you either make it, or you don’t.
We took the view that last November was not too soon, and if we left it any longer, subsequent price performance might make it feel too late. So we made an allocation.
At the time of writing, the entry price looks to have been favourable, but that’s not really the point. We are in the business of keeping clients safe, and we are nervously satisfied that bitcoin has a small part to play in the pudding.”
Ruffer has £20 billion in assets under management with it allocating 2.5% to bitcoin last month, the first British investment managers to do so in a public manner.
The investment is the biggest as far as it is known by any hedge fund or financial company after the $1 billion purchased by a Singaporean crypto focused hedge fund.
Meaning the British have entered the game and bigly, joining their American counterparts as institutional investors eye the digital gold which is now more widely being recognized as a store of value.