The Miller Opportunity Trust—the hedge fund of Wall Street star Bill Miller—got the go-ahead to invest hundreds of millions of dollars in the Grayscale Bitcoin Trust (GBTC).
According to a document with the United States Securities and Exchanges Commission (SEC) filed on Feb. 5, the fund is now allowed to invest into the largest tradable Bitcoin trust to gain indirect exposure to the coin’s price.
With this action, Miller just put even more money into an asset that he has recommended for many years. According to a March 2014 Bloomberg report, he has owned Bitcoin as part of his personal investments for nearly seven years, linkening it to “making a venture bet.”
Having said that when Bitcoin was between $450 and $500, he was right in predicting that the “potential return is huge” at the time.
The Miller Opportunity Trust—with its $2.25 billion of assets under management on the last day of 2020—is not the first major hedge fund to invest in Bitcoin. As Modern Consensus reported in late January, asset management firm CCB International Securities sold one-third of its gold holdings in exchange for Bitcoin, setting it at 5% of the fund’s total value.
This year the cryptocurrency space saw a sharp increase in the number of institutional investors who participate in its market. In fact, some suggest that this is what is different about the bull run that started at the end of 2021.
The latest firm to join is carmaker Tesla, which bought $1.5 billion of Bitcoin and started accepting it for payments. Bitcoin was sent soaring by the news and breached new record-high prices reaching a value of well over $43,000.