An unnamed UK pension fund has decided to invest in Bitcoin, representing 3% of its total assets. This marks the first time a British DB pension scheme has ventured into cryptocurrency.
Strategic Allocation for Long-Term Growth
The fund's trustees conducted a rigorous due diligence process, addressing essential considerations such as Environmental, Social, and Governance (ESG) factors, security concerns, and the investment case for Bitcoin. According to Glenn Cameron, Cartwright's head of digital assets, this decision aligns with the pension fund's 10-year investment horizon, viewing Bitcoin as a hedge against economic volatility and a way to diversify the portfolio. 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.
Catching Up with Global Peers
Cartwright is urging UK institutional investors to explore Bitcoin investments to avoid lagging behind their international counterparts. Some pension funds and large financial institutions worldwide have already taken steps to integrate Bitcoin into their portfolios. For example, the State of Wisconsin’s pension plan in the US recently made its first Bitcoin allocation, although at a modest 0.1% of its total assets. By contrast, the UK's pension fund's 3% allocation signals a bolder stance on Bitcoin’s potential.
Future Plans
Cartwright 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.
The UK's pension fund investment in Bitcoin highlights a growing interest among institutional investors in cryptocurrencies, aiming for sustainable growth through asset diversification.
