The recent Bitcoin (BTC) rally above $100,000, reaching its all-time high of $108k, has attracted conservative investors into the crypto space. Pension funds have started investing in cryptocurrency, driven by its promising returns. Thus, the recent crypto market rally and the Bitcoin price surge have marked the growth of crypto pension funds.
In a recent report, the Financial Times revealed that most crypto pension funds have begun showing interest in US-regulated ETFs, which enable indirect investment in cryptocurrencies such as Bitcoin and Ethereum. Many believe that the increasing demand for crypto among typically conservative schemes would lead to more institutional adoption, especially under the incoming President Donald Trump’s administration.
Crypto Pension Funds and ETF Investments
Reportedly, pension schemes in Wisconsin and Michigan are among the largest investors in US crypto-focused funds. In addition, UK and Australian pension funds have also started investing in Bitcoin recently, albeit in small amounts.
Notably, the State of Wisconsin Investment Board holds about a $155 million stake in BlackRock’s Bitcoin ETF. Michigan, being the sixth-largest shareholder in Grayscale’s Ethereum ETF, has a share of $12.9 million. It also holds a notable position in Cathie Wood’s ARK 21Shares Bitcoin ETF.
Pension Industry To Boom with Crypto Investments
Despite a “slow moving,” the pension industry is poised to experience “very interesting” growth due to its crypto influence, said Sam Roberts, director of investment consulting at Cartwright. As revealed by Roberts, more than 50 individuals approached the pension consultancy seeking a pivot to crypto-based retirement investments.
Although crypto pension funds starts expanding after major setbacks in the digital asset market, many believe the storm is passing. Experts see the growing acceptance of crypto as a driving force for the global crypto market growth. Alex Pollak, head of UK and Israel at 21Shares, stated, “There’s no doubt that the headwinds are disappearing . . . I think you’ll see more of this institutional adoption.”
However, crypto pension funds faced strong objections from Daniel Peters, a partner in Aon’s global investment practice. Instead, he recommended hedge funds as a more suitable option for pension funds seeking exposure to alternative assets. He stated,
We don’t think pensions funds should allocate to crypto — it’s highly volatile and we don’t see any robust valuation framework that can justify the value. We fundamentally don’t think this should be part of a pension fund strategy for those reasons unless they are allocated via a specialist manager.
Bitcoin’s Surge Post Trump’s Inauguration
Crypto experts and analysts eye Bitcoin’s rally after Trump’s inauguration on January 20. There are anticipations that the market will witness high volatility before and after the inaugural ceremony. While many assert crypto pension funds’ digital asset investments were driven by Bitcoin ETF, the industry awaits to see how the market movement could further influence conservative investors.
BTC price jumped 3% in the past 24 hours, with the price currently trading at $99,178. The 24-hour low and high are $96,505 and $100,781, respectively. Furthermore, the trading volume has increased by 11% in the last 24 hours, indicating a rise in interest among traders.
Nynu V Jamal
Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Australia’s pension fund AMP has become the first major superannuation fund to buy into crypto by purchasing Bitcoin worth $27 million. The asset class previously barred for high volatility by big fund managers has now ignited FOMO as BTC price surpassed the $100K milestone after Donald Trump’s win in the U.S. presidential election.
Pension Giant AMP Invests $27 Million in Bitcoin
$57 billion AMP becomes Australia’s first major pension fund to buy Bitcoin, reported Australian Financial Review on December 12. They are the first in the $4 trillion retirement savings industry to invest in the crypto asset class.
Other big pension funds claimed they would not be following AMP’s lead into the cryptocurrency market. Earlier, Reserve Bank Governor Michele Bullock criticized ideas to invest in crypto assets, saying it does not belong in retirement portfolios.
AMP chief investment officer Anna Shelley said $27 million – or 0.05 percent of its $57 billion in funds under management – of BTC was purchased in May. BTC price was trading in the $60,000-$70,000 range. The investment was part of a diversification strategy after AMP’s dynamic asset allocation process backed Bitcoin based on its “momentum and sentiment.”
Bitcoin Rally to $100K Driving Mainstream Adoption
Matthew Sigel, head of digital assets research at VanEck, said those with assets in AMP’s balanced and growth investment options were the most likely to be exposed to Bitcoin at a customer level.
Pension funds across the globe eyes investing in Bitcoin, especially after the U.S. SEC approved spot Bitcoin ETF earlier this year. Recently, UK pension fund giant Cartwright joined the league and allocated around 3% to Bitcoin as a direct investment.
Hedge funds have jumped to buy Bitcoin and pension funds are in discussions with clients to invest in BTC. However, it is delayed because of the long due diligence process of pension funds.
BTC price currently trades at $100,837, up nearly 20% in a month. Bitcoin hit a high of $104K amid the Trump trade and transition to pro-crypto administration in the United States.
Varinder Singh
Varinder has over 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently leading the news team to cover latest updates and developments in the crypto industry.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The National Pension Service, South Korea’s national pension fund, has reported purchases of nearly $34 million in MicroStrategy shares.
NPS is South Korea’s largest public pension fund and the third-largest in the world with over $729 billion worth of assets.
Wu Blockchain shared the news via X:
South Korea’s National Pension Service (NPS) disclosed that it bought 245,000 shares of MicroStrategy in the second quarter of this year, worth about $33.75 million. Previously, NPS bought 282,700 shares of Coinbase in the third quarter of last year. NPS manages $729.77 billion…
— Wu Blockchain (@WuBlockchain) August 16, 2024
Details filed with the US Securities and Exchange Commission indicate the NPS acquired 245,500 of MicroStrategy shares at a total of $33.5 million. The filing relates to the fund’s investments in the quarter ending June 30, 2024.
According to news outlet Infomax, the National Pension Service’s investment in shares of the US-based MicroStrategy accounts for 0.04% of the fund’s total investment in US stocks.
Apart from MSTR, the fund also holds more than $51 million in Coinbase shares, $31.5 million in Roblox and over $61 million in shares of Block, Inc. The fund also holds shares of AI-chip powerhouse Nvidia, and tech giants Google and Microsoft.
MicroStrategy shares up 92% YTD
While the MicroStrategy stock has plummeted 20% as the crypto market struggles with choppy conditions. Despite falling from highs of $180 in mid-July to currently around $131, MSTR remains more than 92% up year-to-date.
MicroStrategy, as well as top crypto related companies such as Coinbase, are largely bullish amid growth and projections for Bitcoin. For Michael Saylor-led MicroStrategy, part of the success has come after adopting the strategy of adding BTC to its balance sheet.
MSTR has soared alongside Bitcoin since MicroStrategy first bought BTC in 2020, the latest surge coming amid Bitcoin’s push to reclaim $60k.
Saylor said in a recent post on X that MSTR has outperformed 499 of the 500 stocks in the S&P 500.
Four years ago today, MicroStrategy adopted #Bitcoin as its primary treasury reserve asset; since then $MSTR has outperformed 499 of 500 stocks in the S&P 500. pic.twitter.com/Db7GVeyc9a
— Michael Saylor
(@saylor) August 11, 2024
The company acquired an additional 12,222 BTC in Q2, 2024, adding more than $805 million in BTC to its haul. Currently, MicroStrategy holds 226,500 BTC worth over $13 billion.
The State of Michigan has made a bold move in the crypto market, adding Bitcoin products to its pension funds. A recent SEC filing revealed that the state has acquired 110,000 shares of the ARK 21Shares Bitcoin ETF (ARKB), worth around $6.6 million. This move reflects the growing global interest in Bitcoin and its related investment products.
Michigan Pension Fund Adds Bitcoin ETF
Michigan’s decision to invest in the ARK Bitcoin ETF marks a significant development in the crypto market. The state’s pension fund has taken a notable step by incorporating Bitcoin into its investment portfolio. This move follows the lead of other states, signaling a broader trend of institutional adoption of cryptocurrency.
Meanwhile, a recent SEC filing highlighted the Michigan Retirement System’s acquisition, showing that the state has added $6.6 million in Bitcoin through the ARK ETF. This follows Wisconsin’s earlier disclosure of a $160 million investment in Bitcoin ETFs, demonstrating a growing confidence among state pension funds in the potential of cryptocurrency.
Additionally, the addition of Bitcoin to the state’s pension fund comes at a time when other regions are also showing interest in crypto investments. Just a day before Michigan’s announcement, Jersey City revealed plans to integrate Bitcoin ETFs into its pension fund allocation.
Jersey City Mayor Steven Fulop expressed his long-term support for cryptocurrencies, despite their volatility. He stated that the city is in the process of filing new papers with the SEC, aiming to complete the process by the end of summer.
Also Read: Terra Luna Classic Dev Reveals Severe Issues In Tax2Gas Review
Growing Institutional Interest In BTC
The trend of state pension funds investing in Bitcoin ETFs underscores the increasing institutional interest in the crypto market. Since the launch of the U.S. Bitcoin Spot ETF in January, there has been significant traction and robust inflows into the investment instrument. This indicates a strong institutional appetite for cryptocurrency as a viable investment.
Meanwhile, the move by Michigan Pension Fund and other states reflects a broader acceptance and integration of digital assets into traditional investment portfolios. As more state pension funds begin to include Bitcoin products, it signals a shift towards mainstream adoption of cryptocurrencies. This growing acceptance could drive further investment and innovation in the crypto space.
During writing, Bitcoin price was up nearly 5% and exchanged hands at $67,690. In the last two days, the U.S. Spot BTC ETF has recorded an inflow of about $75 billion, despite significant outflux from GrayScale BTC ETF.
Also Read: Ethereum ETF Show Promise Despite Grayscale Outflows
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Jersey City Mayor Steven Fulop has disclosed that the city’s pension fund will invest some of its resources in Bitcoin ETFs. This move comes in the wake of the Wisconsin Pension Fund, which has already included Bitcoin ETFs in its investment portfolio.
Jersey City To Adopt Bitcoin ETFs
Jersey City’s decision to buy Bitcoin ETFs clearly indicates that the city is open to accepting and integrating cryptocurrencies. The mayor of Jersey City, Mr. Fulop, has shared his vision on cryptocurrencies saying that he has been a supporter of them for quite a long time though they are rather volatile.
According to him, the pension fund of Jersey City is in the process of filing new papers with the U. S. Securities and Exchange Commission (SEC) and the process should be completed by the end of summer.
This comes at a time when more and more traditional financial institutions are opening up to the world of digital assets. At the same time, he stressed the importance of blockchain as a revolutionary technology that is on par with the internet.
Not my normal subject matter in a post but I’ll share anyway – the question on whether Crypto/Bitcoin is here to stay is largely over + crypto/Bitcoin won. The #JerseyCity pension fund is in process of updating paperwork to the SEC to allocate % of the fund to Bitcoin ETFs… https://t.co/5iNEqRqHGM
— Steven Fulop (@StevenFulop) July 25, 2024
In May this year, the pension fund of Wisconsin invested 2% of its money by buying over $160 million in shares of Bitcoin ETF. According to the report, between January 1 and March 31, SWIB purchased roughly $99 million worth of Blackrock’s Bitcoin ETFs and about $64 million worth of Grayscale’s Bitcoin ETFs.
Expansion of Bitcoin ETFs and Institutional Interest
Jersey City’s decision follows a trend of an increasing uptake of Bitcoin among institutional investors across the United States. In an earlier interview in May, Michael Saylor, the Chairman of MicroStrategy, stated that it was only a matter of time before Bitcoin would be included in the U. S. pension fund portfolios. Saylor’s advocacy for Bitcoin in pension funds is gaining traction as more institutional investors recognize the potential of cryptocurrencies as part of diversified investment strategies.
Moreover, investor and entrepreneur Robert Kiyosaki has endorsed Bitcoin and mentioned that policies under a Trump administration could lead to more gains in the value of cryptocurrencies. Kiyosaki believes that a weak US dollar would lead to more exports and jobs hence the price of gold, silver, Bitcoin, and stocks would rise.
Given that over $27 trillion is managed by pension funds alone in the U. S., including cryptocurrencies could benefit from diversification of investments and improve returns.
Furthermore, the Japanese SBI Holdings revealed that it plans to partner with Franklin Templeton to launch a new investment management business of digital assets this year. This partnership is meant to facilitate the growing need for Bitcoin ETFs and other digital assets.
Bitcoin Price Trend
Amid these developments, Bitcoin (BTC) price has had bearish momentum in the last 24 hours, with the price swaying between an intra-day high and low of $66,112.37 and $63,473.47, respectively.
At press time, BTC price was trading at $64,882, a 1.80% decline from the day’s high.
Concurrently, BTC’s market capitalization dipped by 2.09% to $1,275,856,485,468, while the 24-hour trading volume surged by 36% to $37,635,593,518. This surge in trading volume suggests an increase in investor interest as they buy the dip in the hope of a bullish recovery to $ 70,000.
Read Also: OpenAI Launches New Search Engine SearchGPT Amid Global AI Push
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Marsh McLennan unit Mercer to buy pension fund manager Cardano to boost UK footprint Reuters
Source link ]]>
Marsh McLennan Unit Mercer to Buy UK Pension Fund Manager Cardano Insurance Journal
Source link ]]>
Mercer to buy £52bn pension manager Cardano Funds Europe Magazine
Source link ]]>
The Government Pension Investment Fund (GPIF) of Japan, the world’s largest pension fund with assets totaling $1.5 trillion, has officially announced its initiative to explore diversification opportunities that include Bitcoin, alongside traditional investments such as gold and more unconventional assets like forests and farmland. This exploration marks a monumental potential pivot in the investment strategy of a fund traditionally associated with more conservative asset classes.
Japan GPIF Seeks Information On Bitcoin
According to a Bloomberg report dated March 19, 2024, GPIF is in the initial phase of this exploration, focusing on an information request stage rather than signaling an imminent expansion of its investment portfolio. The fund currently diversifies its holdings across a vast array of assets, including domestic and international stocks and bonds, infrastructure, and real estate. With assets under management valued at approximately 225 trillion yen as of the end of December 2023, the GPIF’s interest in Bitcoin and other illiquid assets underscores a notable shift towards broadening its investment aperture.
The GPIF stated, “In addition to basic knowledge about the assets targeted for information provision, we are also seeking information on how overseas pension funds incorporate them into their portfolios and actual investment cases.” This reflects a methodical approach to understanding the potential benefits and risks associated with diversifying into less traditional and more volatile asset classes like Bitcoin.
Recent years have seen the GPIF actively seeking to enhance the sophistication and diversity of its portfolio. “Since the fall of 2022, a total of 56 active funds have been selected in North American, developed country, and Japanese stocks,” the GPIF noted, highlighting its ongoing efforts to refine its investment strategies. The inclusion of Bitcoin and other non-traditional assets would represent a further step in these diversification efforts.
However, the GPIF has cautiously noted, “This announcement is a request for information and does not indicate that the company will expand its investment targets in the future.” This statement clarifies that any decision to incorporate Bitcoin or other proposed assets into its investment strategy will depend on the outcomes of its current research phase.
This move by the GPIF comes amid broader regulatory changes in Japan regarding Bitcoin and crypto investments. Just one month prior to this announcement, Japan’s administration, led by Prime Minister Fumio Kishida, moved to enable investment funds to hold Bitcoin and other cryptocurrencies directly. “The bill states that ‘measures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships,’” according to a statement from the Ministry of Economy, Trade, and Industry.
The GPIF’s exploration of Bitcoin and alternative assets not only underscores the growing institutional interest in Bitcoin, but is also in line with Japan’s regulatory advances aimed at integrating digital assets into the country’s economic framework. The potential inclusion of Bitcoin in the world’s largest pension fund would be huge news and could have implications for other countries and their investment strategies.
At press time, BTC traded at $64,589.
Featured image created with DALL·E, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The Arizona State Senate has approved a bill that may allow Bitcoin ETFs to be included in the portfolios of the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS). This tendency points out the increasing attractiveness of digital assets in retirement savings instruments within the broader investment trend and privatization of government-run pension funds.
Legislative Progress and Proposal Details
After 16-13 voting in the Third Reading on February 22, the bill passed the Senate, reflecting the lawmakers’ strong commitment towards new investment opportunities. The House is reviewing it for the second time, underlining the gradual approach to the inclusion of digital assets in retirement portfolios.
JUST IN :
Arizona Senate considers adding spot #Bitcoin ETFs to the states retirement portfolio. pic.twitter.com/bOeBDg2cMf
— Crypto News Updates (@CryptoNewsUpd8s) March 6, 2024
This plan, when realized, will force both ASRS and PSPRS to keep close tabs on Bitcoin ETF growth and determine the cost-benefit of including such assets as part of their investment strategies.
The law mandates these retirement systems to transact with firms authorized by the U.S. Securities and Exchange Commission (SEC) to provide Bitcoin ETFs. The step guarantees that any shift towards integrating cryptocurrencies into the state pension funds is based on regulatory requirements and financial sanity.
Assessing Feasibility and Risks of Bitcoin ETFs
The notable part of the bill is the mandate for ASRS and PSPRS to draft a comprehensive document summarizing the practicality, challenges, and potential returns of adding Bitcoin ETFs to their portfolios.
Concurrently, this report will provide a comprehensive analysis and suggestions on safely navigating investment in digital assets. It seeks to provide the critical state officials with the requisite information to make informed decisions before the Fifty-Seventh Legislature, First Regular Session.
This prudent, though proactive strategy reflects the virtue of due diligence and the necessary balance between growth opportunities and cryptocurrency investments’ inherent volatility and riskiness.
Institutional Interest and Regulatory Cautions
The Arizona State Senate’s action represents a trend in institutional investors investigating digital assets. Notably, the resolution comes after the SEC’s acceptance of Bitcoin ETFs, providing other opportunities for institutional investors to access the world of cryptocurrencies.
Nevertheless, the proposal has triggered a discussion over whether cryptocurrencies are appropriate in retirement and pension plans, which conservative investment strategies have traditionally dominated because of their long-term nature and the necessity to ensure beneficiaries’ financial safety.
The Department of Labor has previously warned retirement plan fiduciaries regarding the speculative nature of cryptocurrencies and the need for extreme caution when considering such investments for 401(k) plans. As a result, these concerns underline the speculative nature of digital assets and the unpredictable changes in their value.
Read Also: Sui To Host Athens Exchange’s Blockchain Book Building
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: