The sale left Ruffer with about $700million invested, or around 3 per cent of its total assets.
A source close to the £22.2billion asset manager said it had reduced its investment to less than 0.5 per cent of its total, representing no more than £110million.
It is understood that Ruffer started to sell out of Bitcoin after Tesla – the electric car company founded by Musk – announced a $1.5billion purchase of Bitcoin in February and said it would start accepting the cryptocurrency as a payment method.
The source described this as a 'sign of a bubble'.
In January, Musk – who has more than 52million followers on Twitter – changed his Twitter profile to include the word Bitcoin, fuelling the value of the cryptocurrency by nearly a fifth on the same day. The South African entrepreneur tweeted at the end of April that he had not sold any of his Bitcoin, although he said Tesla had sold 10 per cent of its investment to prove it is easy to sell and is 'an alternative to holding cash'.
Hector McNeil, founder of robot fund company HANetf, said: 'Elon tweets a lot of things and he's also right about a lot of things.
'What I've seen over the past six months is how mainstream Bitcoin is becoming. For every investor that pulls back, ten more are getting involved.'
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