Bill Miller’s Hedge Fund Looking To Invest In Grayscale Bitcoin Trust
Wall Street legend Bill Miller is looking to ‘indirectly’ gain exposure to Bitcoin (BTC) with his flagship hedge fund, the Miller Opportunity Trust.
Miller Value Partners is requesting permission with the U.S. Securities and Exchange Commission (SEC) to allocate funds to the Grayscale Bitcoin Trust (GBTC).
The Miller Opportunity Trust hedge fund, run by billionaire hedge fund manager Bill Miller, is Miller Value Partners crown jewel and currently has about $2.25 billion AUM.
Bill Miller founded Miller Value Partners in 1999, and the famed hedge fund manager is the CIO, Chairman and Portfolio Manager of the Miller Opportunity Trust.
As of December 31, 2020, the hedge fund had $2.25 billion AUM, and its biggest holdings include Uber, Amazon and Facebook.
According to the February 5 filing, ‘The fund may seek investment exposure to Bitcoin indirectly by investing in the Grayscale Bitcoin Trust, an entity that holds 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.’
Bill Miller Has Long Been A Bitcoin Proponent
Billionaire hedge fund manager Bill Miller has spoken publicly about Bitcoin several times over the past few years.
Miller previously called Bitcoin an ‘insurance policy against inflation.’ Along with Stan Druckenmiller and Paul Tudor Jones, Miller is highly regarded in the financial world after beating the S&P 500 for 15 straight years. A benchmark no other active money manager has achieved.
And this latest move from Miller Value Partners comes just weeks after its famed founder warned not owning Bitcoin is a massive mistake.
Miller discussed Bitcoin in the company’s Q4 2020 Market Letter, warning any companies holding cash were generating a guaranteed loss, thanks to the Fed’s monetary policy.
Miller explained how companies were now looking towards Bitcoin as a hedge against inflation. He said institutional money was ‘trickling in’, but warned it would become a ‘torrent’ if inflation was to pick up.
‘The Fed is pursuing a policy whose objective is to have investments in cash lose money in real terms for the foreseeable future,’ said Miller.
‘If inflation picks up, or even if it doesn’t, and more companies decide to diversify some small portion of their cash balances into Bitcoin instead of cash, then the current relative trickle into Bitcoin would become a torrent.’
Miller Value Partners One Of Many Expected Hedge Funds Entering The Bitcoin Market
Miller Value Partners is one of many hedge funds and institutional money managers looking to enter the Bitcoin market. And with Bill Miller at the helm it’s not surprising they are one of the first.
‘Wall Street legend’ is thrown around too often and become a bit of a cliché, but Biller Miller is rightfully regarded as one of the main investors of the last 30 years.
He has outperformed the S&P 500 for the last 15 years, which no other investor can lay claim to. So, when Bill Miller moves, people listen and generally follow.
Institutions are already trickling money into the Bitcoin market, and with the likes of Bill Miller, Paul Tudor Jones and Stan Druckenmiller publicly backing it, that trend will grow, and as Bill Miller says: turn into a torrent.
