The US retirement fund GRP, managing assets of $140 billion, has disclosed to its 1.6 million clients that it holds investment exposure in 7 Bitcoin spot ETFs. This move signifies that US retirement funds have begun to explore Bitcoin. Increasingly, institutions are recognizing Bitcoin’s value as a store of wealth and are considering incorporating it into their investment portfolios.
On Thursday, April 25, Bitcoin Magazine tweeted, "According to the 13F filing, US retirement fund GRP has disclosed that they now hold investment exposure in 7 Bitcoin spot ETFs. This indicates that retirement funds have begun to explore the Bitcoin ETF market."
The crypto community has been abuzz about GRP's move, with the blockchain game project Feel Market commenting, "The entire US economy could be positioned around Bitcoin ETFs, and Asian ETFs might follow the same pattern. Bitcoin could indeed grow significantly and impact the global economy. A new gold is on its way."
Another blockchain project, overHere, noted, "This looks favorable for Bitcoin. Historically, pensions have been very conservative and cautious in their investment choices."
It is reported that GRP has 1.6 million clients with assets under management totaling $140 billion.
Conservatively, if 10% of its asset management scale were allocated to Bitcoin ETFs, it could lead to a $14 billion capital inflow for Bitcoin, equivalent to purchasing nearly 219,000 bitcoins at current market prices, which is close to the holdings of the largest corporate whale in the US, MicroStrategy.
If more retirement funds decide to invest in Bitcoin in the future, it is expected to bring a significant increase in market funds.
According to ICI statistics, as of the end of 2023, the total retirement assets in the US reached $38.4 trillion. This includes funds from individual retirement accounts (IRAs), various defined contribution plans provided by employers, such as 401(k) plans, 403(b) plans, and the Federal Employee Retirement System's Thrift Savings Plan (TSP).
Interestingly, these assets account for 32% of US household financial assets.
Since 2021, US officials have advocated including Bitcoin in retirement plans.
The Houston Firefighters’ Relief and Retirement Fund in Texas announced in 2021 that it would invest $25 million in Bitcoin and Ethereum through the investment management firm NYDIG.
At the end of 2022, US Senator Cynthia Lummis expressed support for Bitcoin as part of a diversified retirement plan and hoped to see the asset included in the US 401(k) retirement plans.
In March this year, the Arizona State Senate introduced a resolution requesting legislators and state retirement fund managers to consider allocating part of their investment portfolio to Bitcoin spot ETFs.
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Edmund
Bitcoinist
Cointelegraph