UK-based investment firm Ruffer Investment Company, which has invested heavily in bitcoin, expects to see more institutional adoption of the first cryptocurrency in the coming years.
In its semi-annual investment review, Ruffer analysts emphasize that the company often uses “unconventional hedging methods” and Bitcoin is excellent for this role.
“We think that we approached this asset in time. Bitcoin is at the foot of a long process of institutional adoption and development as a financial instrument, ”the document says.
The review also provides more detailed data on Ruffer’s investments in the first cryptocurrency. In addition to the direct purchase of bitcoins by the Ruffer Multi-Strategies Fund in the amount of £ 550 million, the firm also invested in shares of companies with assets in BTC. Thus, investments in Microstrategy amounted to 1.14 million pounds, and 2.17 million pounds were invested in Galaxy Digital.
Interestingly, one of the main risks in relation to bitcoin, analysts highlight the “bad reputation” of the cryptocurrency:
“As we go through the processes of normalization, regulation and institutionalization, these risks can have a strong impact on the price. If we are wrong and Bitcoin depreciates, then we will lose money. Therefore, we hold a relatively small position, although quite noticeable. ”
Earlier, Bloomberg analysts reported that the recent correction in the bitcoin rate could scare off some institutional investors from investing in the first cryptocurrency.
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