Announces a reduction in gold investment allocation, traditional financial institution Ruffer's fund acquires 2.5% in Bitcoin.

Traditional financial investment institution Ruffer Investment Co Ltd, based in the UK, announced to its shareholders yesterday (12/15) that 2.5% of its asset allocation has been invested in Bitcoin. Given the size of Ruffer's fund, this amounts to at least a $15 million investment.

Bitcoin as a "Hedge" Strategy

According to an announcement by theLondon Stock Exchange, Ruffer allocated 2.5% of its multi-strategies fund to Bitcoin in November, following a reduction in gold investments. Ruffer stated:

This is primarily a defensive move to avoid the continuous depreciation of major global currencies. Bitcoin will allow the company to diversify its investments in gold and inflation-linked bonds, serving as a hedge against currency and market risks.

Varied Views on Investment Amount

According to economist Alex Krüger, as of November 30th, Ruffer's assets under management totaled £20.3 billion, with the multi-strategies fund around $620 million, meaning the 2.5% allocation equates to purchasing $15 million worth of Bitcoin.

Ruffer Investment Company's AUM is $620M, so the allocation represents a small $15 million into $BTC.

It's parent company has £20.3 billion in AUM. pic.twitter.com/VdbIIc0B0U

— Alex Krüger (@krugermacro) December 15, 2020

However, according toThe Block, based on a temporary document released by theInternational Stock Exchange (TISE) on December 14th, as of September 30th, Ruffer's total investment in the multi-strategies fund was approximately $1.5 billion. With a 2.5% allocation, Ruffer could have purchased up to $37.5 million worth of Bitcoin.

One of the most prominent companies betting on Bitcoin this year is MicroStrategy, a Nasdaq-listed company, which not only allocated its entire cash reserves but also recently completed a bond offering and plans to reinvest all profits in Bitcoin. Its stock price has soared this year, rising nearly 270% since March.

However, the market's response to Ruffer Investment's Bitcoin bet seems lukewarm, with a post-market decline of 1.56%.

Update on 12/17

According to the latest release from Ruffer Investment, the total investment in Bitcoin is approximately $744 million, representing 2.7% of its multi-strategies fund.