Ruffer Nets $1.1 Billion From Quickfire Bitcoin Trade

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  • Ruffer Investment made $1.1 billion in five months on their Bitcoin trade
  • Ruffer bought $550 million-worth in November last year and sold out in April
  • The trade is a reminder that institutions sell as well as buy

Ruffer Investment, one of the institutional buyers of Bitcoin in 2020, revealed yesterday that it has terminated its position, netting a $1.1 billion profit within five months. Ruffer made a $550 million investment in Bitcoin in November last year, selling half just weeks later after the price doubled, and is now completely out of its position having sold the remainder of their position last month. The company has not ruled out a return to Bitcoin in the future, but until the market settles down Ruffer is putting its money in other more stable areas.

Ruffer Took Profits at the Perfect Time

Ruffer made headlines last year when it announced that it had purchased around $550 million worth of Bitcoin at a time when the price was approaching prior highs of $20,000. Just weeks later the price had soared to $40,000, with Ruffer investment director Hamish Baillie telling The Times that they “took some profits for our clients in December and early January”.

Baille says that Ruffer “actively managed the position” from that point, selling the last tranche in April with a total profit of “slightly more than $1.1 billion.” This may have come as a surprise to some who thought that institutions were buying into Bitcoin on ideological grounds, but the Ruffer trade is a reminder that institutions are no different than most traders – they’re in it for the money.

Investment Director Backs Bitcoin

Trading Interestingly however, Baille seems to have a stronger understanding of the principles behind Bitcoin than many other asset managers, telling The Times that criticism over its ecological issues are overblown:

There is a lot of hyperbole and misinformation out there when it comes to bitcoin’s carbon footprint. Bitcoin uses less electricity than the gaming industry.

The Ruffer asset manager also added that Bitcoin has been a fantastic alternative for citizens in countries like Venezuela, showing a much deeper appreciation for Bitcoin than could be expected.