Bill Miller's Hedge Fund Sees Bitcoin Having 'Significant Upside Potential' as Digital Gold

In a report filed with the U.S. Securities and Exchange Commission (SEC), the fund managers for the Miller Opportunity Trust, Bill Miller’s hedge fund, state that “bitcoin has significant upside potential as a form of digital gold.” The report details that despite its volatility, bitcoin’s “risk-reward is attractive.”

Hedge Fund Manager Sees Bitcoin’s ‘Significant Upside Potential’

Miller Value Funds’ semi-annual report for the Miller Opportunity Trust, filed with the U.S. Securities and Exchange Commission (SEC) last week, states:

We believe bitcoin has significant upside potential as a form of ‘digital gold.’

The Miller Opportunity Trust hedge fund has $2.72 billion in assets under management (AUM) as of July 31. Its portfolio managers are Bill Miller and Samantha McLemore.

“We have been observers of bitcoin for a long time and during the quarter, the fund received approval to invest in Grayscale Bitcoin Trust (GBTC), which is an open-ended grantor trust fully invested in bitcoin,” the report details. “In the quarter, as bitcoin fell, the trust traded at one of its larger discounts to its underlying holdings in bitcoin providing additional upside potential.”

As of June 20, the fund holds 1.5 million shares of Grayscale Bitcoin Trust (GBTC) valued at $44,715,000, the report filed with the SEC shows.

The fund managers added, “With gold’s market capitalization greater than $11 trillion, bitcoin’s current cap close to $600 billion would have a long way to go to catch up,” elaborating:

We are early in a continuing adoption curve and bitcoin will be volatile but we think the risk-reward is attractive.

Veteran investor Bill Miller has long been a bitcoin proponent. In May, when the price of bitcoin fell from $58K level to below $34K, he said it was “pretty routine.” Miller added that the correction was “right in line with moves we have seen many times in bitcoin.” In April, he disagreed with some analysts that bitcoin was in a bubble. Instead, he said bitcoin was entering the mainstream as demand grew faster than supply.