Miller Opportunity Trust, a value fund founded and overseen by veteran American investor and hedge fund manager, Bill Miller, stated in a regulatory filing submitted to the U.S. Securities and Exchange Commission (SEC) that it is planning to invest in Bitcoin. Based on the filing, Miller Opportunity Trust may seek indirect exposure to Bitcoin through the investment into the Grayscale Bitcoin Trust.
The investment trust plans to invest 15% of its assets into Grayscale’s Bitcoin Trust. As of December 31, 2020, Miller Opportunity Trust holds $2.25 billion in assets under management. This means that the trust plans to indirectly invest more than $300 million dollars into Bitcoin through Grayscale’s Bitcoin Trust.
The Miller Opportunity Trust wrote in the filing with the US SEC that:
“The Fund may seek investment exposure to bitcoin indirectly by investing in the Grayscale Bitcoin Trust, an entity that holds bitcoin. The Grayscale Bitcoin Trust invests principally in bitcoin. The Fund will not make any additional investments in the Grayscale Bitcoin Trust if, as a result of the investment, its aggregate investment in bitcoin exposure would be more than 15% of its assets at the time of investment.”
The announcement comes at a time after Bill Miller told investors in a recent letter about Bitcoin’s potential as a good investment for maximizing profits.
Better Understanding of Risks
The skyrocketing Bitcoin price has gained widespread attention from media, individuals, institutions, and regulatory agencies. With significant price growth and volatility, the number of investors participates in the crypto market has been on the rise. Although there are many options available to institutional investors to gain exposure to Bitcoin, the Grayscale Bitcoin Trust has become a popular approach.
The Miller Opportunity Trust is one of the several major investors indirectly channeling their funds into Bitcoin. While a huge number of institutional investors opt to put 10%-15% of their funds’ net worth indirectly into Bitcoin, the commitment is another milestone for the crypto market. An estimate of half a billion-dollar commitment indicates that several larger investors now understand the advantages and the risks associated with the inclusion of cryptocurrencies in their portfolios.
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