New Zealand’s manager of funds worth more than US$ 350 Million says there is absolutely no way one can discount Bitcoin. Ends up investing into Bitcoin which is equivalent to 5% of its reserve, as reported by firm’s CIO.
NZ Funds Management is a famous assets management firm in New Zealand in whose management are lying assets worth more than US$350 Million. James Grigor, who is the firm’s CIO, told that for the first time his firm has invested in a completely dynamic asset class. He informed that at least 5% of firm’s reserves have been put into Bitcoin as investment.
Although acquisition of Bitcoin was done in October last year yet the public disclosure was done by the firm only now. CIO of NZ Funds Management apprised that the decision of investment into Bitcoin was one of the toughest ever faced by the firm. He told further that under constitution of the firm, it was not allowed to invest in any type of crypto. However, in order to become a crypto investor, the firm has had to incorporate amendments in the constitution. The amendments were duly incorporated in October 2020 told Grigor.
Grigor stated that since the day when his firm had purchased Bitcoins, the value of Bitcoin is increasing massively. He stated that his company and its Board of Directors are glad that they had made the right decision at the perfect time.
He also said that personally to him Bitcoin can be regarded as commodity. He added further that like any commodity product Bitcoin too has its own hallmarks. He compared Bitcoin with Gold for suggesting that Bitcoin is as useful as gold against economic uncertainties.
Grigor also stated that:
Bitcoin’s reputation has evolved a great deal in a span of last 3 years. It has become one of the commendable source of storing value for short as well as long term basis. One of the amazing attributes of Bitcoin which compelled his company to become Bitcoin investor was its use as Gold. He explained that Bitcoin is actually a form of Gold but digital one. He praised Bitcoin in the words that one cannot possibly discount Bitcoin no matter how smart one is.
But the decision of NZ Funds Management was criticized by many internal rivals of the firm. They claimed that the move is more or less a gamble and financially unsound. They were of the view that the reserve could have been used in other reliable investment vehicles rather than Bitcoin. While some of the firm’s rivals argued that they have no place for Bitcoin in their investment portfolios. They argued that by nature Bitcoin is speculative and investments are not done on the basis of speculations.