The institutional adoption of Bitcoin continues to be a hot topic of debate amongst all in the crypto community. Some believe that the institutional adoption of the most valuable cryptocurrency is why the surge in prices. In contrast, others think it’s not in any way affecting it, but rather the institutional investors are the ones reaping off the digital assets.
However, regardless of what both parties agree on, institutional adoption is growing the cryptocurrency market capitalization, which is currently the 8th most valuable (if it were a company) firm in the world. The story of UK based Investment Manager, Ruffer might likely be termed as quick profits, as the investment outfit has now cashed upon 50% of their investment in Bitcoin.
Ruffer Investment made $750 million profit in Bitcoin
The year 2020 had witnessed a large adoption of institutional investment in Bitcoin, with many firms declaring that they had committed their investor’s funds, cash reserves, and profits into the cryptocurrency. Ruffer investment joined the growing list of institutional investors in Bitcoin last November by committing about $600 million of their reserves into the digital assets when trading at slightly less than $20K. In a new report from the firm by one of its senior financial managers, Duncan MacInnes, he has now confirmed that the investment firm has sold off half of its investment in the cryptocurrency in January when it hit the $40,000 mark.
While it is normally expected by all to withhold investment, Ruffer has taken a much-needed step by quickly maximizing its profit, which according to MacInnes, is about $750 million from the cryptocurrency despite sell half of its investment in the digital asset. According to MacInnes, the investment managers still have about $700 million worth of investment despite the recent trade off.
Is it time for others to follow Ruffer Investment?
Most investors have described the rising institutional investment in Bitcoin as a means of maximizing profit off their cash reserves. In the statement of MacInness, the investment manager discussed that the growing need to make the most of an economically troubling year had driven his firm to commit to the cryptocurrency.
He also echoed the words of a famous institutional investor, Micheal Taylor, by saying that devaluing fiat currencies like the USD forces people to look for other means of making the most off investment. Micheal Saylor’s Microstrategy has committed at least $1 billion of its cash reserves in Bitcoin. Today, no news has been heard of whether they have traded part or all of it, considering that they bought it before the cryptocurrency hit the $20K mark.
The question on the lips of many institutional investors will be whether to wait a little longer or cash out a bit like Ruffer Investment. However, there is no talk of a crash in Bitcoin prices anywhere, as investors and enthusiasts hope that the digital asset will hit the $60k mark before the end of 2021.