Pension Funds Explore Bitcoin Investments Amid Growing Interest

According to PANews, pension funds in the United States, United Kingdom, and Australia are increasingly exploring investments in Bitcoin. Pension funds in Wisconsin and Michigan have become significant holders in U.S. stock market funds focused on cryptocurrencies. By the end of September, the Wisconsin Investment Board was the 12th largest holder of BlackRock's Bitcoin ETF, with shares valued at approximately $155 million. Michigan is the sixth-largest holder of Grayscale's Ethereum ETF, with holdings worth $12.9 million, and the 11th largest holder of ARK 21Shares Bitcoin ETF. Since the U.S. election day, Mercer, a UK pension fund consultancy, has received numerous inquiries from trustees eager to understand this popular asset class. Many pension funds have turned to regulated U.S. spot Bitcoin or Ethereum ETFs approved last year. In the UK, Cartwright, a pension consultancy, facilitated its first Bitcoin transaction, with a small undisclosed pension plan investing around £1.5 million directly in Bitcoin to achieve excess returns and address funding gaps. Additionally, over 50 individual savers have expressed interest in transferring their entire pensions into cryptocurrencies. Cartwright is also in discussions with two multi-employer pension funds about establishing a Bitcoin fund. In Australia, AMP pension fund management is also leveraging Bitcoin to enhance returns. Steve Flegg, AMP's senior portfolio manager, acknowledged the high risk and novelty of cryptocurrencies but emphasized their undeniable scale and potential. Consequently, AMP's portfolio has made a modest allocation to Bitcoin futures. Despite this growing interest, funds investing in Bitcoin and other cryptocurrencies remain a minority in the pension industry, with most advisors hesitant to recommend such investments to clients.