Former Legg Mason Star Bill Miller And Bloomberg Are Optimistic About Bitcoin’s Future
Bill Miller, the former Legg Mason star, is optimistic about bitcoin’s future, he said on a webcast sponsored by Digital Galaxy. Former Legg Mason Star Bill Miller And Bloomberg Are Optimistic About Bitcoin’s Future
Miller, who now runs Miller Value Partners, hasn’t sold any of his bitcoin; he first got into the digital currency when it was at ~$200 and after the Mt. Gox collapse, he snapped up more, buying it at levels up to $500 with his average cost for is bitcoin investment at ~$300.
Mike Novogratz, founder and CEO of Galaxy Digital, sees a number of factors in bitcoin’s favor, such as hedge funds and institutional investors getting into the digital asset. He also points to the macroeconomic story of the Fed buying Treasurys and other securities.
Furthermore, increased access and ease of buying bitcoin should also bode well, he said.
“The pieces are in place now for people to feel safe making that bet,” said Novogratz, who described bitcoin as “turbo-charged gold.”
Miller says: “At the current price, at the high $9Ks, I think it’s much safer than where it has ever been before.”
“I don’t see why and FA couldn’t advise clients to put 1% of assets” in bitcoin, he said.
Wall Street’s Bill Miller: ‘Bitcoin Has Potential To Be Worth A Lot Or Worth Zero’
Wall Street’s renowned investor Bill Miller calls himself a Bitcoin observer, predicts that the main cryptocurrency can be worth either a lot or zero.
Bitcoin (BTC) can potentially have a high value or be worth nothing, noted Wall Street investor Bill Miller told CNBC in an interview on Monday, Jan. 7.
Miller, the founder of investment management firm Miller Value Partners, spoke to CNBC host Kelly Evans during a show called “The Exchange,” calling Bitcoin an interesting technological experiment and recalling a clear pattern of higher lows each year.
For instance, the coin’s lowest price hovered around $3,200 last year, he stated. However, now Bitcoin is trading over $4,000 again. Miller told Evans:
“Bitcoin has the potential to be worth a lot and to be worth zero.”
The investor also mentioned another tendency, noting that Bitcoin bottomed almost exactly 52 weeks after it peaked in December 2017, while the stock market didn’t bottom for another three to four weeks.
However, Miller highlighted that a reason he likes to include crypto in his portfolio is that there’s no obvious lasting correlation between crypto markets, stocks and bonds: while crypto can be down, traditional markets can be up, and vice versa.
“I’m a Bitcoin observer, but I wouldn’t call it a believer,” Miller concluded.
In December 2017, when Bitcoin hit its record mark of $20,000, Miller claimed to have invested almost 50 percent of the money from his hedge fund in top crypto. As of September 2018, Miller Value Partners retains $2.89 billion in assets under management.
Six months after, Miller said in an interview that he had been holding a modest one percent of his own assets in Bitcoin since 2014.
Moreover, Miller stated that “bubbles are necessary to bring capital into the market to see if these innovations are actually going to stand,” referring to Bitcoin’s rate in March 2018, when the coin was steadily going down after its historical peak.
Bill Miller’s Hedge Fund Has Half Its Money In Bitcoin
“It’s just about 50 percent right now,” Miller says regarding his MVP 1 fund on the WealthTrack podcast with Consuelo Mack.
Miller says the fund is exploring ways to “mitigate risk” and that bitcoin won’t be half of the fund for that much longer, but it doesn’t necessarily mean he’ll be selling bitcoin.
Miller says on the podcast that the closest he came to having half his fund in one asset was in the 1990s, when his fund had 20 percent in AOL, close to 20 percent in Dell and 10 percent in Fannie Mae.
Bloomberg Analyst Sees Bitcoin At $13K Despite Hints Of Deep Breakdown
Mr. McGlone’s bullish outlook for Bitcoin came on the day when the cryptocurrency was extending its downside correction.
Bitcoin price is eyeing a breakout towards $13,000, according to Bloomberg analyst Mike McGlone.
The senior commodity strategist stated that the cryptocurrency’s declining volatility is making it a digital version of gold.
He also highlighted BTCUSD trading inside a bullish technical structure.
Could Bitcoin price break above $10,500, a technical resistance it has repeatedly failed to breach since September 2019? Bloomberg analyst Mike McGlone thinks so.
The senior commodity strategist said Friday that he sees Bitcoin hitting $13,000 in the coming sessions. He gave two reasons to justify its bullish call for the cryptocurrency. The first mentioned the asset’s declining volatility, while the other highlighted one technical pattern that promised an upside breakout.
“Bitcoin is caged bull set for [a] breakout, eying $13,000 Resistance,” Mr. McGlone headlined as he added that a plummeting Bitcoin volatility reflects its “maturation toward a digital version of gold.”
Bitcoin Is ‘Less Risky the Higher It Goes,’ Says Investor Bill Miller On CNBC
Mutual fund titan Bill Miller is talking bitcoin again.
“One of the things that’s interesting about bitcoin is that it gets less risky the higher it goes,” Miller told CNBC Friday. “That’s the opposite of what happens with most stocks.”
Miller continued to describe bitcoin as “a supply-and-demand story” with roughly 900 bitcoins created each day and a swarm of retail and institutional investors scooping up enormous chunks of available supply.
Some of those large investments have come from firms like MicroStrategy, which has scooped up over 70,000 BTC with plans to buy more, and London-based asset manager Ruffer Investment, which dumped $740 million into bitcoin toward the end of 2020.
Payment companies like Square and PayPal are also funneling retail capital into bitcoin. In Q3 2020, for example, Square reported a record $1 billion in bitcoin revenue via its Cash App mobile wallet. PayPal, after announcing its plan to support bitcoin and other cryptocurrencies in October, promptly removed its waitlist for the service less than a month later, citing overwhelming demand.
“For those people who are waiting for the pullback, they got it in the first quarter. You could have bought bitcoin at $4,000 in the first quarter,” Miller noted, referencing bitcoin’s nearly 50% intraday crash in March 2020.
But amid bitcoin’s more than 300% rally in 2020, extended by an additional 40% gain already in 2021, Miller said the price of these returns is the asset’s volatility.
“You have to expect that it’s going to be very, very volatile,” Miller told CNBC. “If you can’t take the volatility, you probably shouldn’t own it. But its volatility is the price you pay for its performance.”
Still, Miller said earlier this week he thinks markets are underpricing bitcoin’s value proposition as a potential inflation hedge, calling it cash’s “rat poison,” a term Warren Buffett famously applied to bitcoin with an entirely opposite connotation.
Why Did Bill Miller And His Son Buy MicroStrategy Debt? It’s The Bitcoin
“Not owning any Bitcoin has been a massive mistake, and we expect that will continue to be true,” the famed value investor’s son wrote to clients.
Taking part in MicroStrategy’s recent $650 million convertible senior note offering was basically getting an almost-free call option on bitcoin, Bill Miller IV, the son of legendary investor, said.
* Miller and his dad co-manage the Income Strategy fund for Miller Value Partners, which is headed by the senior Miller, a noted bitcoin bull.
* In a Jan. 21 letter to investors, the younger Miller explained what bitcoin is and defended it against common criticisms.
* “Bitcoin has been the best performing asset over eight of the past ten calendar years, and its annualized performance has blown away the next-best performer, the Nasdaq, by a factor of ten over the past decade,” Miller wrote along with .
* “Not owning any Bitcoin has been a massive mistake, and we expect that will continue to be true.”
* Miller then noted the offering resulted in the only debt the business intelligence firm carries and the amount is half what Miller thinks the company’s worth.
* MicroStrategy, which used the proceeds of the offering to buy more bitcoin, now owns more than $2 billion in the largest cryptocurrency.
* “So, when MicroStrategy issued the bond at par, in our assessment there was very little downside and an almost-free call option on Bitcoin,” Miller wrote.
* Miller also praised MicroStrategy head and bitcoin evangelist Michael Saylor’s “almost unique ability” to catch and scale trends early, while portraying his uneven tenure as CEO as an asset, saying, “He is the only sitting CEO we can find that has thrived after presiding over a 99.86% decline in his company’s equity price.”
Bill Miller’s $2.25 Billion Flagship Fund May Now Buy GBTC To Gain Bitcoin Exposure Of Up To 15%
The fund noted it would not expose more than 15% of its $2.25 billion in assets to bitcoin.
Miller Value Funds–run by veteran hedge fund manager and bitcoin bull Bill Miller–may invest in the Grayscale Bitcoin Trust through its flagship fund, the Miller Opportunity Trust.
“The Fund may seek investment exposure to bitcoin indirectly by investing in the Grayscale Bitcoin Trust, an entity that holds bitcoin,” the fund wrote in a filing with the U.S. Securities and Exchange Commission. “The Grayscale Bitcoin Trust invests principally in 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.”
Miller Opportunity Trust had assets under management of $2.25 billion as of Dec. 31, 2020, making the fund’s potential maximum investment in GBTC $337 million. The fund is co-managed by MIller and Samantha McLemore.
In late January, Miller’s son, Bill Miller IV, said in a letter to investors in another Miller fund that taking part in MicroStrategy’s $650 million convertible senior note offering was like getting an almost-free call option on bitcoin.
Grayscale is owned by Digital Currency Group, the parent company of CoinDesk.
Bill Miller Plans $400M Bitcoin Investment Via GBTC
Bill Miller is set to increase his Bitcoin exposure by plowing 15% of one of his portfolios to buy Grayscale BitcoinTrust shares.
Hedge fund legend Bill Miller is exhibiting an even larger appetite for Bitcoin (BTC). According to a Friday filing with the United States Securities and Exchange Commission, The Miller Opportunity Trust is seeking indirect exposure to BTC via the Grayscale Bitcoin Trust.
The planned investment is coming at a time when the GBTC premium is at its lowest level since April 2019.
If the GBTC shares acquisition does pull through, it will mark a significant departure from the usual investments in equities and derivatives for the $2.25 billion fund. Indeed, the trust’s website lists airlines, healthcare and financials among its core investment position focus.
With the fund’s Bitcoin exposure limited to 15% of its assets under management, the GBTC outlay could top $300 million. As part of the filing, the trust did comment on price volatility, stating, “There is relatively small use of Bitcoin in the retail and commercial marketplace in comparison to the relatively large use of Bitcoin by speculators.”
Miller is himself a noted Bitcoin proponent. Back in 2016, the legendary Wall Street investor committed 30% of his hedge fund into Bitcoin. This proportion has since increased to over 50% with the BTC play contributing to massive growth in the value of Miller’s hedge fund.
Back in January, Miller countered Warren Buffett’s infamous “rat poison” retort, by adding that cash was the rat in that instance. The comments echo sentiments espoused by Pantera Capital CEO Dan Morehead back in 2018 who said something akin to Bitcoin is rat poison because banks are the rats.
Bitcoin recently rallied to $40,000 over the weekend — its highest price level in almost a month. However, the move above $40,000 was met with a swift retrace below $38,000 with the largest crypto by market capitalization down almost 2% in the last 24-hour trading period.
Bill Miller To Allow Opportunity Fund To Buy Into Bitcoin Trust
Famed fund manager Bill Miller extended his endorsement of Bitcoin by reserving the right for one of his portfolios to indirectly invest in the largest cryptocurrency.
The Miller Opportunity Trust may invest in the Grayscale Bitcoin Trust, a vehicle institutions use for Bitcoin exposure, a filing with the U.S. Securities and Exchange Commission shows. Miller’s fund would be prohibited from additional investing in the Grayscale trust if its aggregate Bitcoin exposure tops 15%.
Miller was one of Bitcoin’s earliest proponents among major investors. He said in 2014 he owned the cryptocurrency personally, and in October 2017 told The Wall Street Journal that his MVP 1 fund had about 30% of its assets in Bitcoin.
The Friday filing pointed out that currently “there is relatively small use of Bitcoin in the retail and commercial marketplace in comparison to the relatively large use of Bitcoin by speculators,” leading to price volatility.
The $2.7 billion Miller Opportunity Trust has a five-year return that puts it among about the top 2% of peers, according to data compiled by Bloomberg. It was mostly invested in equities as of Dec. 31.
Bitcoin has pulled back since reaching a record of nearly $42,000 in early January. It’s almost quadrupled over the past year and was trading at about $39,100 as of 7:26 a.m. in London.