“Bitcoin is a unique beast as a safeguard of value”: English fund Ruffer

Key facts:

Bitcoin is becoming a supranational currency, according to the company.

Ruffer assured that his investment in the cryptocurrency was made at the right time.

The British investment fund, Ruffer, defended on Tuesday, January 12, its decision to invest 744 million dollars in bitcoin (BTC). The London company acquired, in November 2020, 45,000 units of the first cryptocurrency in the middle of a wave of institutional investments that reached the bitcoin ecosystem.

The capital injection was unveiled in December when the London Stock Exchange revealed that the firm disposed of 2.5% of its portfolio to bitcoin. Now, through a statement, the company reviewed the investments made last year with special emphasis on BTC.

Jonathan Ruffer, president of the investment fund, indicated in the public letter that to protect their clients in good times and bad, they keep 40% of their portfolio in government bonds linked to inflation and gold.

In this regard, the executive explained that they maintain positions in bonds “because they see great inflation in the future” and in gold “because the world currencies are in danger of being compromised due to the printing of more money.”

Thus, he stressed that buying bitcoins was a correct move in the face of potential global inflation and the collapse of national currencies. On BTC as an alternative for the safeguard of value he emphasized:

“Our underlying reasoning is that bitcoin is becoming a challenge to gold’s position as the only supranational currency, the one to be owned when national currencies plummet (…) our judgment is that it is a unique beast as an emerging store of value , which combines some of the benefits of technology and gold. ‘

Jonathan Ruffer, Chairman of the English investment fund Ruffer Investment Company. Source: Ruffer /

The executive admitted that bitcoin is a “seemingly meaningless” asset, however, he said it actually makes “a lot of sense for the way we see the world.” Ruffer’s comment stems from the global health crisis over COVID-19, the deterioration of international economies, widespread quarantines and constant printing of money as “aid” packages for citizens.

Although the company executed the purchase in November, Ruffer assured that the fund has watched bitcoin for a long time, but without revealing since when. CriptoNoticias reported in December that the company had partially reduced its exposure to gold to invest in BTC. The precious metal is seen as a traditional haven in times of financial turmoil.

Investment in bitcoin with positive figures

At the end of the statement, the company shows how their general returns have been from 2016 to 2020, the year in which they debuted with bitcoin. In 2016 Ruffer’s total investments reached gains of 11% and in 2017 of 0.5%. For 2018, the investment strategy left red numbers (-5.8%), while 2019 closed at 7%.

Last year, the The company posted double-digit earnings of 16.7%, its best performance in years. The momentum of bitcoin in the markets would have contributed to the returns that Ruffer managed to achieve.

According to the Bitcoin Treasuries website, Ruffer invested $ 744 million in BTC on Nov. 1. Back then the price of the cryptocurrency was $ 13,700 per unit. Currently the price is around 36,000 dollars, which represents a revaluation of the company’s investment to 1,600 million dollars.

CriptoNoticias reported in December that institutional investment in bitcoin had reached $ 20 billion. By the time of this article’s publication, companies, mutual funds, and institutional entities have already injected more than $ 30 billion, which speaks to the growing interest in the cryptocurrency created by Satoshi Nakamoto.