Famous asset manager Ruffler unveils its bet over Bitcoin. According to the official announcement, the manager has allocated 2.5% of funds into the world’s leading digital asset.
The announcement also mentioned that the company has diverted from gold and entered into digital space by investing over the flagship currency. 2.5% of the company’s portfolio is now dedicated to Bitcoin because it has a bright future full of opportunities.
Devaluation of Fiat Currencies
The manager has explained that it is small in quantity but it is a good investment against the “devaluation of currencies.” This year the Coronavirus pandemic has created many serious issues for governments who decide to print cash in a large amount in an attempt to the support economy. As a result of surplus money printing, the investors and companies suffer a lot and look for hedge assets against rising inflation.
“The exposure to Bitcoin is currently equivalent to around 2.5% of the portfolio. We see this as a small but potent insurance policy against the continuing devaluation of the world’s major currencies.”
As per the official document, Bitcoin is a good instrument for diversification. “Bitcoin diversifies the company’s (much larger) investments in gold and inflation-linked bonds, and acts as a hedge to some of the monetary and market risks that we see,” the announcement reads.
Over the recent few months, a new trend comes on the screen that shows the world’s leading digital asset has decoupled from gold. The decoupling between two prominent hedge objects shows investors are moving their investment from gold into Bitcoin.
The shifting trend is clearly seen as many giant companies have turned their attention towards the flagship digital currency. Prominent asset management firm MicroStrategy invested more than $400 million in Bitcoin with the help of the US-based crypto exchange Coinbase. MicroStrategy is now planning to add more $400 million in Bitcoin to its portfolio. Famous US insurance company MassMutual has purchased Bitcoin worth $100 million. MassMutual has just dedicated a small portion of its funds into digital currency. If all pension companies and insurance firms invest in digital assets, the market cap of Bitcoin could reach one trillion dollars.
At press time, the price value of the flagship currency is standing at $19,674 after an increase of 2.67% over the day. It is near to overturn $20,000 which is the last resistance before a new BTC bull run.