Hedge fund legend Bill Miller is showing an even bigger appetite for Bitcoin (BTC). According to a report filed with the US Securities and Exchange Commission on Friday, the Miller Opportunity Trust is seeking indirect exposure to BTC through the Grayscale Bitcoin Trust.
The planned investment comes at a time when the GBTC premium has hit its lowest level since April 2019.
If the GBTC stock acquisition prevails, it will be a significant departure from the usual investments in stocks and derivatives for the $ 2.25 billion fund. The trust’s website lists airlines, healthcare and finance at the heart of its investment position.
With the fund’s bitcoin exposure capped at 15% of its assets under management, GBTC spending could exceed $ 300 million. As part of the filing, the Trust commented on price volatility, stating: “Bitcoin is used relatively rarely in retail and the trading market, while speculators use Bitcoin relatively frequently.”
Miller is a well-known Bitcoin proponent himself. The legendary Wall Street investor invested 30% of his hedge fund in Bitcoin back in 2016. That proportion has since risen to over 50%, with the BTC game adding massive value to the Miller hedge fund.
Back in January, Miller countered Warren Buffett’s infamous “rat poison” retort by adding that cash is the rat in this case. The comments echo the assessments made in 2018 by Pantera Capital CEO Dan Morehead, who said something similar to bitcoin was rat poison because banks are the rats.
Bitcoin recently soared to $ 40,000 over the weekend – the highest price level in almost a month. However, the move above $ 40,000 was hit with a rapid drop below $ 38,000, with the largest crypto by market cap falling nearly 2% in the last 24 hours of trading.
