London wealth manager cashes out $1B profit from $600M BTC buy in November
The firm is worth over $1 billion dollars due to its bitcoin investment, but how exactly did the firm manage to make such a sharp gain?
In November 2016, after a tumultuous year that saw bitcoin’s value drop from around $1000 to below $200, a London-based wealth manager, Christian Angermueller, made a massive bet on bitcoin. He made a $1.3 billion US dollar profit, making him the largest single buyer of bitcoin that month.
On November 12th, the UK’s Financial Conduct Authority (FCA) filed court documents showing that Bitcoin-based investment management firm IFG Capital purchased over $600 million worth of Bitcoin in a single week. The firm, which has managed over £1.3 billion (~$1.6 billion) since it was established in 2014, holds the majority of the cryptocurrency’s assets, with the bulk of its money in Bitcoin (BTC).
Asset manager Ruffer made more than $1 billion profit on a $600 million bitcoin investment it made in November 2020. Speaking to The Times, Hamish Bailey, chief investment officer of the London-based asset manager, said that Ruffer closed its bitcoin position in April with a profit of more than $1.1 billion: When the price doubled, we saw some profit for our customers in December and early January. We actively managed the position and when we sold the last tranche in April, the total gain was just over $1.1 billion. Baillie says Ruffer was one of the first fund managers to buy BTC. At the time of the investment, the price of bitcoin had broken through the $15,000 mark and was rising rapidly to test the then historic highs of around $20,000 in 2017. The CIO attributed bitcoin’s parabolic price rise in late 2020 to the pandemic freeze and stimulus payments in the United States. He said the company sold its stake in part because younger investors won’t spend as much time trading cryptocurrencies now that the blockchain is finished. The company has invested the profits from the BTC exchange in other protective assets, such as. B. inflation-linked government bonds. However, Bailey is convinced that major financial institutions, including Ruffer and Goldman Sachs, will continue to buy bitcoin and says that more purchases are certainly not out of the question. If you have a multi-asset strategy, the elements that behave differently are really useful. There’s no point in being active several times if all your various assets are moving at the same speed. Ruffer is not the only major crypto-currency financial institution: According to Bitcointreasuries.org, 36 publicly traded companies currently have BTC on their balance sheets. Only six or 16% of listed bitcoin investment companies are currently in the red, including Nexon, Meitu and Seetee. The three largest holders – MicroStrategy, Tesla and Square – own $5.2 billion in BTC.Cryptocurrency values are on the rise, but not everyone is thrilled. From the lowest points in 2018, Bitcoin has nearly tripled and is now trading at over $8,500. This week, UK-based wealth manager Christopher Keshian set aside nearly $1 billion to buy the currency in November in an effort to profit from its upward trend.. Read more about how to buy bitcoin and let us know what you think.