By Hassan Mehmood (Saudi Arabia)
US-based One River Asset Managements has purchased Bitcoin worth $600 million and is going to expand investment in the top digital asset to $1 billion.
Peters’s Interview
As reported by Bloomberg, CEO of One River Asset Management, Eric Peters, unveiled detailed information about the $600 million BTC purchase in his recent interview. According to him, the company bought Bitcoin worth $600 million in November when the price was below $16,000. He hinted at investing more into this new asset class and said it is just a beginning. Peters said:
“There is going to be a generational allocation to this new asset class. The flows have only just begun.”
One River Asset Management firm came into existence in 2013 and is known for betting over volatile assets. Its investment arms, Dynamic Convexity Fund and Long Volatility Fund, have witnessed an increase of 40% and 33%, respectively, since the start of the year. The major kick behind the exponential increase was the Coronavirus pandemic that pumped hedge assets while putting pressure on the US equity markets.
Bullish Factors
He explained that government policies amid Coronavirus and an exponential increase in debt are responsible for growth in the digital assets space. According to Peters, it is “the most interest macro trade I’ve seen in my career.” He even acknowledged that investment in Bitcoin has more risk as compared to gold and claimed there “are very few convex bets that’ll help your portfolio when these macro forces start playing out.”
After MicroStrategy dived into crypto, other asset managers also opened their gates for digital currencies. MicroStrategy purchased crypto worth more than $400 million and decides on another purchase of $400 million.
Recently, two prominent names, MassMutual and Ruffler, showed interest in the top digital asset. According to reports, insurance giant MassMutual bought Bitcoin worth $100 million. Similarly, asset manager Ruffler unveiled its bet of 2.5% of the allocation ($700 million) in the leading cryptocurrency.
In the purchase of Bitcoin by One River, there is a major part of billionaire hedge fund manager Alan Howard who is also the co-founder of Brevan Howard Asset Management.
Due to the price hike, Bitcoin is gaining more recognition from Wall Street, and with each new day, institutions are disclosing their venture investments over digital currencies. The flagship cryptocurrency has reached its new all-time high after making a bullish move above $23,000.
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