Bill Miller’s Hedge Fund Plans to Buy $400 Million in Bitcoin

The investment will be up to 15 percent of Miller’s top hedge fund.

Bill Miller, the veteran hedge fund manager, is doubling down on his Bitcoin investments as he is planning for BTC exposure of his flagship fund, The Miller Opportunity Trust, through an investment into the Grayscale Bitcoin Trust.

Friday’s Securities and Exchange Commission (SEC) filing revealed that the hedge fund is looking to get up to 15 percent indirect exposure to Bitcoin. 

Grayscale is one of the top cryptocurrency fund managers in the United States that facilitates crypto exposure to institutions.

“The Grayscale Bitcoin Trust invests principally in bitcoin,” the filing explained. “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 Miller Opportunity Trust is the top fund managed by the veteran hedge fund manager. The $2.7 billion hedge fund primarily takes positions in the airline, healthcare and financial companies. 

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Even a 15 percent exposure means the fund will buy around $400 million in Bitcoins. However, it will be prohibited from any investment higher than 15 percent.

An Early Proponent of Bitcoin

Miller is one of the early proponents of Bitcoin. He revealed in 2014 that he holds Bitcoins and later in October 2017 told that one of his funds has up to 30 percent of Bitcoin exposure.

The fund is purchasing stakes in the Grayscale Bitcoin Trust when Bitcoin is pushing to break its all-time high record again. However, the digital currency still remains significantly volatile. Most recently, car manufacturer, Tesla revealed that it bought $1.5 billion in Bitcoin.

The filing further explained that “there is relatively small use of Bitcoin in the retail and commercial marketplace in comparison to the relatively large use of Bitcoin by speculators” contributing to the Bitcoin volatility.

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