LONDON (Reuters) – British fund supervisor Ruffer Funding Administration has shifted round $675 million of its shoppers’ fortunes into bitcoin, an investor memo seen by Reuters confirmed, in one of many largest alerts of rising institutional curiosity within the digital forex this yr.
The agency, which manages 20.3 billion kilos ($27.3 billion) in property on behalf of greater than 6,500 traders globally, described the allocation as “a small however potent insurance coverage coverage in opposition to the persevering with devaluation of the world’s main currencies”, the memo mentioned.
The allocation represents round 2.5% of its complete property, the memo mentioned. Ruffer referred Reuters requests for remark to its media relations company, which didn’t instantly reply to enquiries.
Bitcoin has soared to a report excessive this yr, up 170%, as traders see within the cryptocurrency a hedge in opposition to the chance of inflation as governments and central banks activate the stimulus faucets, and a digital cost methodology that guarantees to go mainstream.
On Wednesday it was up 1.8% at $19,780, slightly below from its all-time excessive of $19,918 hit this month.
The value surge makes bitcoin a lovely guess for traders keen to take riskier positions as they hunt for yield in a record-low rate of interest surroundings.
“Bitcoin diversifies the corporate’s (a lot bigger) investments in gold and inflation-linked bonds, and acts as a hedge to among the financial and markets dangers we see,” Ruffer mentioned within the memo.
Reporting by Sinead Cruise, Tom Wilson, Anna Irrera, modifying by Louise Heavens