Ethereum

United

Bitcoin

An unnamed UK pension fund made investment in Bitcoin, representing 3% of its total assets.&nbsp;
This is reportedly the first time a British defined benefit (DB) pension scheme has ventured into cryptocurrency. The investment was confirmed by pension consultancy Cartwright and&nbsp;<a style="text-decoration:none" href="https://corporate-adviser.com/cartwright-calls-on-uk-institutional-investors-to-back-bitcoin/">reported</a> by Corporate Adviser.
<h2 dir="ltr" id="span-span-strategic-allocation-for-long-term-growth-span-span">Strategic Allocation for Long-Term Growth</h2>
The fund’s trustees reportedly engaged in a rigorous due diligence process, addressing essential considerations such as Environmental, Social, and Governance (ESG) factors, security concerns, and the investment case for Bitcoin.&nbsp;
&nbsp;
According to Glenn Cameron, Cartwright's head of digital assets, the decision aligns with the pension fund's 10-year investment horizon, viewing Bitcoin as a hedge against economic volatility and a means to diversify the fund’s portfolio.
&nbsp;
Sam Roberts, Cartwright’s director of investment consulting, explains that the investment is part of a forward-thinking approach to ensure long-term growth and stability.&nbsp;
<blockquote>
 “Trustees are increasingly looking for innovative solutions to future-proof their schemes,” Roberts explained. “This bitcoin allocation is a strategic move that not only offers diversification, but also taps into an asset class with a unique asymmetric risk-return profile.”
</blockquote>
The firm is also planning to launch a Bitcoin Employee Benefits scheme, allowing employers to contribute Bitcoin directly into wallets for their staff. According to Cartwright, five companies have already expressed interest in this scheme.
<h2 dir="ltr" id="span-span-catching-up-with-global-peers-span-span">Catching Up with Global Peers</h2>
Cartwright is now urging UK institutional investors to explore Bitcoin investments to avoid lagging behind their international counterparts. Notably, several pension funds and large financial institutions worldwide have already taken steps to integrate Bitcoin into their portfolios.&nbsp;
&nbsp;
In the United States, for example, the State of Wisconsin’s pension plan&nbsp;<a style="text-decoration:none" href="https://www.wpr.org/news/wisconsin-pension-fund-bitcoin">recently made</a> its first Bitcoin allocation, though at a modest 0.1% of its total assets. By contrast, the UK pension fund’s 3% allocation signals a bolder stance on Bitcoin’s potential.
&nbsp;
Beyond Bitcoin, other cryptocurrencies such as Ethereum are gaining traction. In the U.S., Michigan’s pension fund recently&nbsp;<a style="text-decoration:none" href="https://www.sec.gov/Archives/edgar/data/762152/000076215224000013/xslForm13F_X02/InformationTable_09_30_24.xml">disclosed</a> investing $10 million in Ethereum ETFs. Meanwhile, major global banks are developing products that could eventually include XRP, Litecoin, and Solana, broadening the horizon for institutional crypto investment.

UK Pension Fund Embraces Bitcoin with 3% Fund Allocation

Table of Contents

BSCN

Other articles published on Nov 11, 2024

Altcoin Expert Predicts 5,000% Returns for These 4 Tokens in the Next Bull Run!

Bitcoin Hits Record Highs Amid Rising Spot Demand and Surging Buying Trends

Hamster Kombat Loses 86% of Active Users: Possible Reasons

Legendary Trader Peter Brandt Uncovers Major Bitcoin Buy Signal

3 Emerging Tokens Expected to Surpass Dogecoin’s 2021 Rally

Polymer Launches Real-Time Interoperability For Ethereum Rollups

Join our free newsletter for daily crypto updates!