The Old Mutual Gold & Silver Fund is moving into the crypto space’s “digital gold,” the fund just announced. They have been steering a huge buy-up of bitcoins for months.
Ned Naylor-Leyland, the fund’s manager, stated that the modification included a 5% rebalancing of their ledgers from precious metals equities and precious metals into bitcoins.
The rebalancing started in April 2017 when Bitcoin was in the $1,250 USD price range. Old Mutual Gold & Silver Fund has bought bitcoins ever since.
They have purchased over $11 million to date.
Naylor-Leyland explained that the goal is to use the Bitcoin trend to make short-and mid-term profits. These profits would be used to purchase the fund’s preferred precious metals and equities.
The purchase of bitcoins is a means to the end of enticing other institutional investors to try out a similar approach.
Naylor-Leyland sees bitcoin purchases as a fit for Old Mutual Gold & Silver Fund.
He says, “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.”
Bitcoins are moving up to extraordinary all-time highs. This validates Naylor-Leyland’s move.
With the doors opened, are other traditional funds looking to follow Old Mutual’s footsteps? It is a sure bet they will.
It is anyone’s guess today how many funds will buy bitcoins, but one thing is clear, if Naylor-Leyland’s bitcoin ledger re-charting brings in enormous returns, other funds will quickly follow.
This will happen, but when?