### Retirement fund allocation to Bitcoin#
Hot Topic Overview
Overview
In recent years, a growing trend has emerged of pension funds allocating assets to Bitcoin. Pension funds in Wisconsin and Michigan, USA, have become among the largest holders of cryptocurrency funds, while some pension funds in the UK and Australia have also begun to make small allocations to Bitcoin. This trend is primarily driven by the continued rise in Bitcoin's price and the desire of pension funds to generate excess returns by investing in popular asset classes. While most advisors still hesitate to recommend clients invest in cryptocurrencies, with the improvement of the regulatory environment and the development of the Bitcoin market, more pension funds may join the ranks of those allocating assets to Bitcoin in the future.
Ace Hot Topic Analysis
Analysis
In recent years, the surge in Bitcoin prices has attracted the attention of an increasing number of institutional investors, including pension funds. Pension funds in Wisconsin and Michigan in the US have become one of the largest holders of US stock market funds that focus on cryptocurrencies, while some pension fund managers in the UK and Australia have also made small allocations to Bitcoin through funds or derivatives in recent months. Mercer, a UK pension fund consulting firm, has received a surge in inquiries since the US election. Trustees do not want to be in the dark about hot asset classes. Most pension funds have shifted towards the regulated US spot Bitcoin or Ethereum ETFs that were approved last year. Cartwright, a UK pension fund consulting firm, has facilitated the first Bitcoin transaction. An unnamed small pension plan has directly invested about £1.5 million in Bitcoin, hoping to fill the funding gap with outsized returns. Australia's AMP Pension Fund Management Company has also used Bitcoin to boost returns. Although cryptocurrencies are high-risk and novel, their size and potential cannot be ignored. Therefore, AMP's portfolio has made a modest allocation to Bitcoin futures. However, funds allocating to Bitcoin and other cryptocurrencies are still in the minority within the pension industry. Most advisors are reluctant to advise their clients to venture into cryptocurrencies.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Retirement funds are starting to experiment with small allocations to Bitcoin in pursuit of excess returns.
Pension funds in Wisconsin and Michigan, USA, have become major holders of US stock market funds focused on cryptocurrencies.
Pension fund consulting firms in the UK and Australia have also started offering Bitcoin investment advisory services to clients.
Although cryptocurrencies are high-risk and novel, their scale and potential cannot be ignored, hence some pension funds have made moderate allocations to Bitcoin.