- As digital currencies rise, more institutional investors are making big bets on Bitcoin. Ever since crypto was considered a primary reserve asset by companies, it now enters the portfolio of some of the world’s largest hedge funds.
As digital currencies rise, more institutional investors are making big bets on Bitcoin. Ever since crypto was considered a primary reserve asset by companies, it now enters the portfolio of some of the world’s largest hedge funds.
“Bitcoin is an incredible success.”
Last month, Bridgewater Associates founder and Ray Dalio described Bitcoin as an “incredible feat”, hinting at the possibility of the hedge fund adopting Bitcoin as a hedge against currency devaluation. But for Bill Miller, allocating funds to Bitcoin is not a new move. In 2017, MVP 1, a hedge fund managed by Miller, invested 30% of its assets in Bitcoin.
Miller Opportunity Trust (flagship of Miller Value Funds) announced that it will invest about 15% of its funds in Bitcoin through digital asset management giants Grayscale Investments. The BTC allocation, estimated to be around $ 2.25 billion in the company’s total assets, will exceed $ 300 million, and Grayscale Bitcoin Trust (GBTC) assets will approach $ 14 billion.
15 percent of the fund goes to BTC
Investing primarily in securities, derivatives and other financial instruments, the hedge fund is now adding the leading digital asset to its portfolio. The document filed at SEC contains the following statements:
The fund may wish to indirectly invest in Bitcoin by investing in Grayscale Bitcoin Trust, a Bitcoin-holding asset. Grayscale Bitcoin Trust is a specially offered investment tool whose shares are also sold over the counter. Bitcoin is a digital commodity that is not issued by a government, bank or central institution. Bitcoin resides in an online, peer-to-peer computer network (“Blockchain”) that hosts a public ledger in which transfers are recorded. Bitcoin does not have a physical presence beyond the transaction record on the Blockchain. Grayscale Bitcoin Trust mainly invests in Bitcoin. As a result of the investment, the Fund will not make any additional investment in the Grayscale Bitcoin Trust if its total investment in Bitcoin exposure will be more than 15% of its assets.
In its SEC filing, Miller Opportunity Trust also notes the uncertainty of key aspects of US federal income tax enforcement on Bitcoin investments.