AUKpensionfundhasputBitcoinonitsbalancesheet—inthefirstmoveofitskindinthecountry.
PensionsadvisoryfirmCartwrightannouncedMondaythatithadtoldanunnamedclientintheUKtomakea3%allocationtotheleadingcryptocurrency.
ThefirmsaidthatitmadetherecommendationbecauseofBitcoin’slong-termgains.Thecryptocurrencyhasriseninpricebynearly100,000%since2013,CoinGeckodatashows.
“Trusteesoftheunnamedschemechoosetomakea3%Bitcoinallocation,reflectingthescheme’srelativelylonginvestmenttimehorizon,”theannouncementsaid.
Cartwright’sdirectorofinvestmentconsultingatCartwright,SamRoberts,saidthathehopedthe“strategicmove”wouldbefollowedbyothers.
“Weareproudtohaveledthisgroundbreakingmove,”hesaid,“whichwehopewillbethestartofatrendforinstitutionalinvestorsintheUKtocatchupwiththeirincreasingnumberofpeersandcompetitorsaroundtheworldwhoarealreadytakingadvantageofBitcoin’suniqueattributes.”
CartwrightsaiditexpectsinstitutionaladoptionofBitcointobesimilartowhenpensionschemesstartedbuyingequitiesinthe1970s:Itmaybeslowatfirst,buttheneventuallywillseemlikeabadideatonotallocatetheassettoaportfolio.
InstitutionaladoptionofBitcoinhasgrownaroundtheworld—butparticularlyintheU.S.—followingtheJanuaryapprovalofspotBitcoinexchange-tradedfunds(ETFs).Thefundsallowinvestorstobuyexposuretothecryptocurrencyviastock-likesharesthattradeonregulatedexchanges.
MajorWallStreetplayersincludingBlackRockandFidelitylaunchedthefunds,andhavesofarcollectivelysnappedupover1millionBitcoin—or$67billionworthattoday’sprices
EditedbyAndrewHayward
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