Monday, February 8, 2021

Bill Miller's fund would invest millions of dollars in Bitcoin


Key facts:
The potential investment was notified to the SEC in a filing.
The fund could use up to $ 400 million as hedges.


 One of billionaire Bill Miller's hedge funds, the Miller Opportunity Trust, could put up to $ 400 million in Grayscale's trust for bitcoin (BTC). The move would be a new endorsement of the tycoon to the cryptocurrency in which he has already invested large capital in the past.

In a filing sent to the US Securities and Exchange Commission (SEC) on Friday, Miller Value Funds explained that its Opportunity fund will change its investment strategy. This would now be aimed at indirect investments in bitcoin through Grayscale, one of the largest fund managers in cryptocurrencies.

“The fund can seek exposure with an investment in bitcoin indirectly in the Grayscale Bitcoin Trust, an entity that owns bitcoin. Grayscale Bitcoin Trust is a privately offered investment vehicle, whose shares are also available on the over-the-counter market, ”the presentation can read.

In the document, the corporation defined the scope of the investments to be made. The team would be capped at an exposure of 15% of its assets at the time of investment.

According to a Bloomberg report, Opportunity currently manages $ 2.7 billion, mainly in equity instruments. If the mentioned percentage is taken into account, then the fund could inject a significant part of its resources into the Grayscale Bitcoin Trust.

For Miller Value Funds there is currently "relatively small use of bitcoin in the retail market compared to relatively large use of bitcoin by speculators." This behavior, according to the fund, is what generates the volatility of prices.


Bill Miller, a believer in bitcoin investments


 Bill Miller is one of the most recognized investors who has declared his enthusiasm for bitcoin for years. In December 2017, Miller himself assured that half of his hedge fund was invested in cryptocurrency, according to a report released by CriptoNoticias.

More recently, in January of this year, Miller stated that holding cash and not bitcoins was having a guaranteed loss. The executive made reference to a potential inflationary wave and a greater printing of money from central banks.

The fact that the tycoon now seeks to deepen his positions indirectly shows that institutional investments in bitcoin continue to increase. According to the information service Bitcoin Treasuries, currently corporate capital amounts to more than 40,000 million dollars in BTC.

In fact, this Monday it was announced that the manufacturer of electric vehicles, Tesla, acquired in January about 1.5 billion dollars in bitcoin. The spread of the news would have influenced the sudden increase in the price of the cryptocurrency that reached a new all-time high of $ 44,127 per unit on February 8, according to CoinGecko metrics.