UK-based Ruffer Investment Company announced to shareholders today that it has allocated approximately 2.5 percent of its portfolio to bitcoin, according to Investegate. In a correspondence with CoinDesk‘s Zack Voell, the company increased that percentage, indicating that “Ruffer’s exposure to bitcoin is currently approximately £ 550 million, which equates to approximately 2.7% of the company’s assets under management.” That equates to more than $ 740 million.
In the announcement, Ruffer cited that “this is primarily a defensive move taken in November after the company’s exposure to gold was reduced.”
It is likely that Ruffer Investment Co. this allotment, because a small position in bitcoin can serve as a powerful insurance policy against the continued devaluation of the world’s major currencies, because bitcoin is the company’s (much larger) investment in gold and inflation-linked bonds, and because bitcoin acts as a hedge for some of the monetary and market risks Ruffer Investment Co. see.
Bitcoiners have long speculated that bitcoin is recognized as an allotment next to gold and that entities would diversify from gold to bitcoin.
In a recent episode of the “Bitcoin Magazine Podcast, ”Said economist Lyn Alden that bitcoin is catching on with gold investors.