cryptoknowmics.com
Legendary investor Biller Miller’s ‘Miller Opportunity Trust’ fund highlighted the leading cryptocurrency Bitcoin (BTC) in an investor update last week.
Bitcoin Has Potential to be "Digital Gold"
Earlier this year, the trust fund overseen by Biller Miller had signaled its intention to invest in Grayscale Investment Trust. Miller Opportunity Trust specified that it will not make any additional investments in the Grayscale Bitcoin Trust if its aggregate investment in bitcoin exposure would be more than 15% of its assets at the time of investment.
As of last month, the trust fund owned about 1.5 million shares in Bitcoin Investment Trust, representing about 1.55% of the fund's net assets.
In the latest investor update on Friday, Miller Opportunity Trust’ highlighted that Bitcoin has the potential to be ‘digital gold’, saying:
"In the quarter, as bitcoin fell, the trust traded at one of its larger discounts to its underlying holdings in bitcoin providing additional upside potential. We believe Bitcoin has significant upside potential as a form of "digital gold". With gold's market capitalization greater than $11T, Bitcoin's current cap close to $600B would have a long way to go to catch up. We are early in a continuing adoption curve and Bitcoin will be volatile but we think the risk-reward is attractive."
Bill Miller Gets Receptive Towards BTC
The legendary investor’s interest in Bitcoin (BTC) has grown considerably in the past year. In January he opined investing in cryptocurrency is a suitable risk management strategy in the current market climate. Weeks later, Miller defended the leading cryptocurrency saying he couldn't see another asset with Bitcoin's combination of liquidity and upside potential.
"Now that we know what Bitcoin is, why might someone want to own some? The short answer is that there is no other asset that combines Bitcoin’s liquidity with its upside potential."
Based on information from Miller Value Funds' website, the fund had $2.25 billion in assets under management as of December 31, 2020, with its largest holdings of Uber, Fartech Ltd, DXC Technology Co., and Amazon.