Miller Value Funds, an asset management company with $3.5 billion in AUM, has filed with the Securities and Exchange Commission (SEC) to invest in Grayscale Bitcoin Trust. Miller Value Funds is founded by noted investor and asset manager Bill Miller. He has previously invested in Bitcoin (BTC) on a personal level. This would be the first instance of him managing a bitcoin portfolio for a publicly traded fund.
Miller Value Funds Seeking 15% Exposure to Bitcoin
The official filing reveals that the company is looking for a 15% exposure to Bitcoin via the GBTC trust fund. It also included that it would stop buying the cryptocurrency once the cap is reached.
It remains unclear whether Miller Value Funds is planning to sell bitcoin once its portfolio reaches the 15% mark. Although, the firm did clarify it won’t add any new Bitcoin if their existing purchase breach 15% of their portfolio.
The official filing read:
“The Fund may seek investment exposure to bitcoin indirectly by investing in the Grayscale Bitcoin Trust, an entity that holds bitcoin. Grayscale Bitcoin Trust is a privately offered investment vehicle, the shares of which are also available over-the-counter. 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.”
Bitcoin Emerging as Growing Choice Among Institution Players
Recently, Bitcoin has been emerging as the choice among institution players as the new hedge against inflation asset and a potential store of value. The asset management’s 15% exposure to Bitcoin is one of the many instances where public companies are considering getting into bitcoin.
The year 2020 has been a remarkable year for institutional players jumping on the bandwagon of Bitcoin. For instance, Paypal, MicroStrategy, and other publicly traded companies have already started adding bitcoin to their balance sheets. MicroStrategy is currently leading the institutional bitcoin exposure, having invested $1.5 billion in the leading cryptocurrency.