#Bitcoin allocation in pension funds#
Hot Topic Overview
Overview
In recent years, there has been a growing trend of pension funds allocating to Bitcoin. Pension funds in Wisconsin and Michigan, USA, have become major holders of US equity funds that focus on cryptocurrencies, and some pension funds in the UK and Australia have also started making small allocations to Bitcoin through funds or derivatives. While most advisors are still hesitant to recommend their clients invest in cryptocurrencies, some pension fund managers, such as Cartwright in the UK and AMP in Australia, have begun including Bitcoin in their portfolios in hopes of filling funding gaps through excess returns. Despite the high risk and novelty of Bitcoin, its size and potential cannot be ignored, leading more and more pension funds to experiment with Bitcoin allocations in search of higher returns.
Ace Hot Topic Analysis
Analysis
In recent years, the price of Bitcoin has surged significantly, attracting a growing number of institutional investors, including pension funds. Some pension funds have already begun to allocate a small portion of their assets to Bitcoin, such as those in Wisconsin and Michigan in the United States, as well as some in the UK and Australia. These funds primarily invest through Bitcoin ETFs or derivatives. Mercer, a UK-based pension fund consulting firm, stated that they have received a surge in inquiries since the US election, with many trustees seeking information about popular asset classes, including Bitcoin. Some pension funds have even begun investing directly in Bitcoin, such as a small UK pension plan that invested around £1.5 million in Bitcoin. AMP Capital, an Australian pension fund management company, has also made a modest allocation to Bitcoin futures. While funds allocating to Bitcoin and other cryptocurrencies remain a minority in the pension industry, as Bitcoin prices continue to rise and institutional acceptance of cryptocurrencies increases, more pension funds may join the ranks in the future. However, it is important to note that Bitcoin prices are highly volatile, and the risk is high. Pension funds should carefully consider the risk and return when allocating to Bitcoin.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Retirement funds have started to allocate to Bitcoin, but at a small percentage, mainly through funds or derivatives.
Retirement funds in Wisconsin and Michigan, US, have become major holders of US stock market funds that focus on cryptocurrencies.
Some pension fund managers in the UK and Australia have also made small allocations to Bitcoin, and some institutions are exploring the possibility of setting up Bitcoin funds.
Although cryptocurrencies are high-risk and novel, their size and potential cannot be ignored, so some pension fund management companies have made modest allocations to Bitcoin futures.