UK-based fund manager named Ruffer has announced that it has liquidate its long-term Bitcoin holdings after recording a massive profit. The investment manager interestingly began to liquidate its stash as early as December 2020 when the index was only around $25k and only looking to continue its great uptick. This means that the fund had soft hands and couldn’t exhibit the steely patience needed to ride the top of the wave.
Fear, Uncertainty and Doubt (FUD) is a real thing in the cryptocurrency world. There are many investors and big players who are very cautious about their big sums and they need to make continuous gains as fund managers. This is why they are the most prone to selling their crypto stash short when the market becomes unpredictable. This happened with Ruffer as the fund manager got a return of more than $1.1 billion after an initial investment of just $600 million i.e around 83% . The wealth fund manager has a portfolio of around $34 billion but even with this huge sum involved, the return was worth because of Bitcoin’s meteoric rise.
While on paper this appears like a good transaction, getting more than $500 million return from an investment of just $600 million, it wasn’t up to the potential of Bitcoin’s recent uptick. Just for reference, Bitcoin was at $25k when the Ruffer started selling. It reached a peak of $65k in late April before heavy FUD forced it back to around $35k at press time. So, the investment fund started selling when the index could have gotten above 260% price increase rather than just 83% as it declared it did. Now the fund is almost totally out of Bitcoin and may miss out on yet another big potential uptick.
[He will be watching] from the sidelines than from in the trenches.” and that ““It’s hard to say the froth has come out.”
So these are classic FUD statements from a fund manager like Ruffer as they take their profits and then stalk the industry for some time before investing again. Now Ruffer has flipped its Bitcoin gains into Gold, inflation-protected stocks and commodities. While it is always a good idea to diversify assets and not rely on one asset type, it is clear that Ruffer sold its Bitcoin stash short when it could have recorded a much stronger return sheet. Sometimes only a
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