The decision has been settled – Old Mutual Gold & Silver Fund has chosen that it is the best time to diversify and step in into the crypto-area’s digital gold, as there has just been an announcement that they are initiating a large buy-up for BTC for months.
Per the fund’s manager, Ned Naylor-Leyland, the diversification has involved a five percent rebalancing from precious metals and precious metal equities into bitcoins.
The rebalancing began back in April 2017, when BTC hovered in the $1,250 USD prince range, and the Old Mutual Gold & Silver Fund has been buying bitcoins ever since.
Right now [since then] the amount is rolling up to $11 million.
According to the fund manager, the target is to hop on the BTC boom train on Short and mid-term gains, after which a follow-up investment would come towards the preferred previous metals and related equities.
In this sense, the fund is making Bitcoin work toward their traditional institutional goals — a dynamic that will surely entice other institutional investors to explore a similar approach
“Bitcoin is paving the way for the reintroduction of gold as global money […] Bitcoin was explicitly designed to be digital gold. So if you’re going to have a small proportion of a fund in bitcoin, it should be in a gold fund, because that’s exactly the point.”
While keeping in mind the very latest price development for BTC as being paired with the US Dollar, it seems like Naylor-Leylan is and did make the right choice back in the first quarter of the year.
Following the footsteps of Old Mutual’s shoes looks like other funds will be surely doing, however the main question is how many.
And while that appears to be anyone’s guess right now, one thing is clear — if Naylor-Leyland’s bitcoin rebalancing engenders huge returns, other funds will follow in droves.
The question really is when, not if.
Source : Ethereum World