Future

United

Bitcoin

when

BlackRock

In a first for the UK, a British pension fund has added Bitcoin to its balance sheet, allocating 3% of its portfolio to the cryptocurrency. Cartwright, the pension advisory firm behind this one-of-a-kind move, <a href="https://corporate-adviser.com/cartwright-calls-on-uk-institutional-investors-to-back-bitcoin/" target="_blank" rel="noreferrer noopener nofollow">announced </a>on Monday that it had advised the fund to make this strategic investment.   
Intrigued to know what prompted this bold step? Read on!   
<h2 class="wp-block-heading" id="h-why-bitcoin-is-the-perfect-choice">Why Bitcoin Is the Perfect Choice </h2>   
According to Cartwright, <a href="https://coinpedia.org/price-prediction/bitcoin-price-prediction/" target="_blank" rel="noreferrer noopener">Bitcoin’s potential as a long-term growth</a> asset made it an ideal choice, especially given its nearly 100,000% price increase since 2013. This step marks a significant shift towards embracing digital assets for a traditionally cautious industry.&nbsp;   
Sam Roberts, Cartwright’s director of investment consulting, described the decision as “bold” and “strategic,” emphasizing Bitcoin’s strong growth record as an appealing option for pension funds with long-term investment goals.   
“This could be a game-changer,” he said, drawing parallels between today’s Bitcoin adoption and the 1970s when pension funds first began diversifying into stocks—a once-unconventional choice that has since become standard.   
This allocation is notably ambitious: at 3% of its portfolio, it is 30 times higher than the Bitcoin allocation made by the Wisconsin Pension Fund and the largest percentage held by any sovereign or institutional fund worldwide. Such a high allocation reflects the fund's confidence in Bitcoin’s future growth.   
<h2 class="wp-block-heading" id="h-uk-follows-u-s-in-institutional-crypto-adoption">UK Follows U.S. in Institutional Crypto Adoption</h2>   
This UK pension fund’s Bitcoin allocation mirrors a rising trend in the United States, where institutional interest in crypto assets has been accelerating, especially since January’s <a href="https://coinpedia.org/news/bitcoin-etf-approved-heres-what-next-for-crypto-market/" target="_blank" rel="noreferrer noopener">approval of several spot Bitcoin ETFs</a>. These ETFs, offered by big names like <a href="https://coinpedia.org/news/blackrock-buys-2-4-billion-in-bitcoin-this-week-paves-way-for-institutional-adoption/" target="_blank" rel="noreferrer noopener">BlackRock</a> and Fidelity, allow investors to gain Bitcoin exposure without directly holding it.   
Together, these funds have acquired over 1 million Bitcoin, a stake worth around $67 billion at today’s prices. The U.S. trend has prompted institutions worldwide to pay closer attention to digital assets, making the UK’s foray into Bitcoin less surprising.   [post_titles_links postid="71144"]   
<h2 class="wp-block-heading" id="h-paving-the-way-for-more-uk-pension-funds">Paving the Way for More UK Pension Funds?</h2>   
Cartwright hopes this move will inspire other UK pension funds to consider Bitcoin and other digital assets, especially as regulatory guidelines become clearer. Roberts believes that as Bitcoin’s reputation as a valuable portfolio asset grows, more institutional investors will follow suit.   
This could ignite a broader trend, marking the beginning of a gradual but significant shift in how UK pensions approach investment in digital assets.   [post_titles_links postid="375926"]   
Could this signal a new trend in retirement investments? We will come to know.&nbsp;

UK Pension Fund Makes History; Allocates 3% Portfolio to Bitcoin Investment

Table of Contents

CoinPedia News

Other articles published on Nov 5, 2024

Mike Novogratz Shares Bitcoin Price Predictions Post-US Elections

Swift, UBS, and Chainlink pilot blockchain tokenized fund

Average mining price for BTC now at $59,542, solo miners earn fewer rewards: Report

🗒 Daily Newsletter | Tuesday, November 05, 2024

China: 3 Obstacles Threatening The Recovery Of The Economy

Chainlink and Major Market Players Launch AI-Powered Initiative to Tackle Unstructured Data in Fi...

Join our free newsletter for daily crypto updates!