World's Largest Pension Fund, GPIF, Considers Buying Bitcoin

Japan's largest pension fund, GPIF, is exploring Bitcoin as a potential tool for portfolio diversification in response to societal and technological changes.
World's Largest Pension Fund, GPIF, Considers Buying Bitcoin

Key Takeaways

  • GPIF, the world's largest pension fund, is exploring Bitcoin for diversification.
  • GPIF seeks information on Bitcoin but has not committed to investing.
  • Other pension funds globally have already invested in Bitcoin and crypto assets.

Japan’s Government Pension Investment Fund (GPIF), the world’s largest with $1.4 trillion in assets, is considering Bitcoin for portfolio diversification.

The fund is seeking information on Bitcoin and precious metals as part of a broader strategy to adapt to societal, economic, and technological shifts.

Diversification without commitment

While GPIF is exploring Bitcoin, it has not promised to invest in the cryptocurrency.

The fund currently invests in a variety of assets, including domestic and foreign bonds and stocks, private equity, real estate, and infrastructure.

Bitcoin and precious metals are considered illiquid and are not currently in GPIF’s portfolio.

Global pension funds and Bitcoin

Other pension funds, like the Houston Firefighters pension fund and South Korea’s National Pension Service, have already invested in Bitcoin.

Bitcoin seems to be emerging as an ideal investment for pension funds due to its low correlation with traditional assets, though it has shown a tendency to move in sync with technology stocks.

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