The UK Investment Manager has added Bitcoin (BTC) to his portfolio, highlighting the ongoing institutional shift towards digital assets.

Ruffer Investment Company Limited, a London-listed investment manager, has revealed its new Bitcoin strategy.

In its results report and management comment released Tuesday, Ruffer said it had added bitcoin to its multi-strategy fund primarily as a defensive move against the “continued devaluation” of fiat money. The fund currently holds around 2.5% of its Bitcoin assets.

The distribution took place in November after Ruffer cut its gold stake in BTC.

The company said:

“We consider this a small but effective insurance against the continued depreciation of the world’s largest currencies. Bitcoin diversifies the company’s (much larger) investments in gold and inflation-related bonds and acts as a hedge against some of the monetary and market risks that we do see.”
Founded in 1994, Ruffer has total assets of $ 20.3 billion as of November 27. The company has approximately 6,600 clients worldwide, including individuals, families, pension funds and charities.

Ruffers is reiterating JPMorgan Chase’s recent call for Bitcoin to increase its gold market share. In a client note released last week, Quantitative Strategies led by Nikolaos Banjertzoglu said that adopting bitcoin could lead to “structural barriers” to gold.

The strategists wrote:

He added, “If this medium to long term is correct, the price of gold will suffer a structural obstacle in the coming years.”
2020 has been a year of transformation for Bitcoin, with companies such as Grayscale, PayPal, MicroStrategy and MassMutual writing about the digital asset listing.

Cryptocurrency pioneer and CEO of ShapeShift, Eric Voorhees, believes that powerful institutional actors will protect assets like Bitcoin from government abuse. The bitcoin market, with the participation of large institutions, is a natural ‘bulwark’ against intrusive rules.

Source: CoinTelegraph