UK-based Ruffer Investment Company announced today to shareholders that it has allocated around 2.5 percent of its portfolio to Bitcoin, according to Investegate. With assets under management of USD 620 million, the allocation corresponds to an investment of USD 15 million in BTC, according to investment analyst Alex Krüger.
In the announcement, Ruffer quoted: “This is primarily a defensive move that was taken in November after the company’s exposure to gold was reduced.”
It is likely that Ruffer Investment Co. made this allocation because a small position in Bitcoin can serve as an effective insurance policy against the ongoing devaluation of the world’s major currencies as Bitcoin diversifies the company’s (much larger) investments in gold and linked to inflation Bonds and because Bitcoin acts as a hedge against some of the money and market risks that Ruffer Investment Co. sees.
Bitcoiners have long speculated that Bitcoin will be recognized as an allocation alongside gold and that companies will diversify from gold to Bitcoin.
In a recent episode of the Bitcoin Magazine Podcast, economist Lyn Alden quoted that Bitcoin is resonating with gold investors.
This step by Ruffer Investment Co and many other companies such as MicroStrategy and MassMutual illustrates the further development of Bitcoin as a treasury asset and a credibly neutral store of value.