In a report filed with the US Securities and Exchange Commission (SEC), fund managers at Miller Opportunity Trust, Bill Miller’s hedge fund, state that “Bitcoin, as a form of digital gold, has significant upside potential.” The report shows that despite its volatility, Bitcoin’s “risk / reward ratio” is attractive.
Hedge fund manager sees “significant upside potential” in Bitcoin
Miller Value Funds’ semi-annual report for the Miller Opportunity Trust, filed last week with the U.S. Securities and Exchange Commission (SEC), states:
We believe that Bitcoin as a form of “digital gold” has significant upside potential.
The Miller Opportunity Trust hedge fund had assets under management (AUM) of $ 2.72 billion as of July 31. His portfolio managers are Bill Miller and Samantha McLemore.
“We have been long-time watchers of Bitcoin and during the quarter the fund received approval to invest in Grayscale Bitcoin Trust (GBTC), a perpetual grantor trust that is fully invested in Bitcoin,” the report said. “In the quarter that Bitcoin fell, the trust was trading at one of its larger discounts to its underlying Bitcoin holdings, offering additional upside potential.”
As of June 1st, the fund holds 1.5 million shares of Grayscale Bitcoin Trust (GBTC) valued at $ 44,715,000, according to the report filed with the SEC.
The fund managers added, “With gold market capitalization over $ 11 trillion, Bitcoin’s current cap of nearly $ 600 billion would have a long way to go to catch up,” the fund managers said:
We are at the beginning of a sustained acceptance curve and Bitcoin will be volatile, but we think the risk / reward ratio is attractive.
Veteran investor Bill Miller has long been a proponent of Bitcoin. When Bitcoin price fell from $ 58,000 to below $ 34,000 in May, he said it was “pretty routine.” Miller added that the correction “coincides exactly with the moves we’ve seen many times in Bitcoin”. In April, he contradicted some analysts that Bitcoin was in a bubble. Instead, he said that Bitcoin is entering the mainstream as demand grew faster than supply.
Do you agree that Bitcoin, as digital gold, has significant upside potential? Let us know in the comment section below.
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