British fund manager Ruffer sold almost all of its Bitcoin after Elon Musk’s Tesla bought $1.5 billion worth of the cryptocurrency, reports This Is Money.
Ruffer allocated 2.5% of its portfolio to Bitcoin in November, representing about $600 million.
Bitcoin was worth $15,000 at the time but has since rallied beyond $63,000.
- In early Feb, Ruffer revealed it had cashed out $650 million (considered profit).
- It kept $700 million worth of Bitcoin across its funds.
- This put Ruffer up $750 million on its Bitcoin investment.
Tesla chief exec dropped Tesla’s big Bitcoin buy just a week after those sales were announced. The electric vehicle prince started accepting payments in Bitcoin one month later.
Now, sources close to Ruffer reportedly say that signalled a bubble.
Ruffer — which manages around $31 billion in assets — has since reduced its Bitcoin stake to less than 0.5% of its total (£110 million ($153 million)).
In February, Ruffer co-manager Duncan MacInnes told The Telegraph that Ruffer thinks it’s “relatively early” to Bitcoin, “at the foothills of a long trend of institutional adoption and financialization of Bitcoin.”
The firm acquired its Bitcoin via crypto exchange Coinbase, which debuted on the Nasdaq in April.
As for Tesla’s Bitcoin, it’s still holding the majority of its crypto.
However, Musk recently took heat for the company offloading 10% of its Bitcoin stash. The billionaire claimed the move was to prove liquidity.
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