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Massive Gold Fund Set to Drop $11 Million on Bitcoin

The Old Mutual Gold & Silver Fund has decided it’s high time to diversify into the crypto space’s “digital gold,” as the fund’s just announced they’ve been conducting a large buy-up of bitcoins for months.

Per the fund’s manager, Ned Naylor-Leyland, the diversification has involved a five percent rebalancing from precious metals and precious metal equities into bitcoins.

The rebalancing began back in April 2017, when BTC hovered in the $1,250 USD prince range, and the Old Mutual Gold & Silver Fund has been buying bitcoins ever since.

The amount of bitcoins the fund’s bought to date is over $11 million.

Per Naylor-Leyland, the goal is to ride the Bitcoin boom to short- and mid-term profits, thereafter revinvesting these profits back into the fund’s preferred precious metals and related equities.

In this sense, the fund is making Bitcoin work toward their traditional institutional goals — a dynamic that will surely entice other institutional investors to explore a similar approach

Naylor-Leyland sees the move as nothing short of a natural fit:

“Bitcoin is paving the way for the reintroduction of gold as global money […] Bitcoin was explicitly designed to be digital gold. So if you’re going to have a small proportion of a fund in bitcoin, it should be in a gold fund, because that’s exactly the point.”

And with the BTC price now hovering around unprecedented all-time highs, it looks like Naylor-Leyland is feeling like he made the right choice back in April.

Will other funds follow in Old Mutual’s shoes accordingly? Surely.

The question, though, is how many.

And while that appears to be anyone’s guess right now, one thing is clear — if Naylor-Leyland’s bitcoin rebalancing engenders huge returns, other funds will follow in droves.

The question really is when, not if.

TLDR: A major gold and silver fund is slotting five percent of its portfolio toward bitcoins, wanting to capitalize on “digital gold” and the Bitcoin boom.

William M. Peaster is a cryptocurrency journalist and copy-editor based out of El Paso, Texas. He's an avid fan of Ethereum, ERC-20 tokens, and smart contracts in general.

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