Reinvesting Cryptocurrency back into Gold and Silver
The announcement was made by the fund manager Ned Naylor-Leyland in an interview with Bloomberg on November 16. The fund that manages over 220 Million of precious metal equities has started to invest in bitcoin in early April.
Naylor-Leyland explained that the idea was to take gains made from the rising value of cryptocurrencies and reinvest them into gold and silver assets. The fund has plans to allocate up to five percent of its portfolio into cryptocurrencies.
This move comes after the number of hedge funds investing in cryptocurrencies are at an all-time high with the numbers steadily rising as the value of cryptocurrencies has skyrocketed this year. Traditional hedge funds are also starting to pay attention to the cryptocurrency space but are – for the most part – still proceeding with cautious interest.
The value of bitcoin has been rallying with its price surpassing the 8,000 dollar mark while the price of gold has been trading between 1200 and 1400 dollars per ounce since the start of the year. As communities debate among themselves as to whether bitcoin is a better store of value than gold, Old Mutual’s suggests that perhaps bitcoin should be considered as digital gold rather than a currency outright…