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UK investment manager changes the allocation of bitcoin from gold to ‘defensive move’

The UK-based investment manager has added Bitcoin to its portfolio, underscoring the existing institutional move into digital assets.

Ruffer Investment Company Limited, an investment manager of shares traded on the London Stock Exchange, has revealed its latest Bitcoin plan. Ruffer said it has added Bitcoin to its Multi-Strategies Fund in a performance update and manager statement posted on Tuesday, mainly as a defensive move toward the “continued devaluation” of fiat currency. The fund now owns about 2.5 percent of its Bitcoin assets.

After Ruffer decreased its exposure to gold in favor of BTC, the allocation was made in November. The firm said: “We see this as a small but potent insurance policy against the continuing devaluation of the world’s major currencies. 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.”

Established in 1994, Ruffer has assets under management worth EUR 20.3 billion ($27.2 billion) as of November 30. The organization has nearly 6,600 clients dedicated to individuals, families, pension plans and charities worldwide.

The step by Ruffer echoes a recent call from JPMorgan Chase that Bitcoin is quietly swallowing the market share of gold. Quantitative strategies led by Nikolaos Panigirtzoglou said that Bitcoin acceptance could lead to “structural headwinds” for gold in a note to customers that was published last week.

The strategists wrote: “If this medium to longer-term thesis proves right, the price of gold would suffer from a structural headwind over the coming years.”

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