$3 Billion Hedge Fund to Invest in Bitcoin

Miller Value Funds plans to invest in bitcoin according to their latest filing with the Securities and Exchanges Commission (SEC).

“The Fund may seek investment exposure to bitcoin indirectly by investing in the Grayscale Bitcoin Trust, an entity that holds bitcoin,” they say, adding:

“The Fund will not make any additional investments in the Grayscale Bitcoin Trust if, as a result of the investment, its aggregate investment in bitcoin exposure would be more than 15% of its assets at the time of investment.”

The fund to invest is the Miller Opportunity Fund, which has its holdings almost fully in stocks like Uber, Alibaba and Facebook.

Bill Miller, its founder, is worth about half a billion dollars and recently retweeted the bitcoin stock to flow model:

It’s unclear currently how much they plan to invest in bitcoin, but their threshold of 15% of total value is interesting.

Prior to 2020, the suggestion for institutional investors was to not have more than 1% in bitcoin.

Some papers last year however have suggested at least 10% to 20% with this fund being in the middle range.

That’s if it appreciates, but how much they will put in to begin with, remains to be seen as for the first time a ‘value’ investor enters crypto in a public manner.