UK Pension Fund Makes History With Bitcoin Investment

An undisclosed UK pension fund has invested 3% of its total assets in Bitcoin, marking the first ever Bitcoin investment by a British defined benefit scheme

A UK pension fund has made history by becoming the first British defined benefit scheme to invest in Bitcoin, allocating 3% of its total assets to the cryptocurrency, according to pension specialist Cartwright, which was first reported by Corporate Adviser.

The undisclosed pension fund made the Bitcoin allocation in October, following a comprehensive due diligence process. According to Sam Roberts, Cartwright’s director of investment consulting, the scheme’s 10-year investment horizon aligns well with Bitcoin.

“Trustees are increasingly seeking innovative solutions to future-proof their schemes in the face of economic challenges,” said Roberts. “This Bitcoin allocation is a strategic move that not only offers diversification, but also taps into an asset class with a unique asymmetric risk-return profile.”

According to Glenn Cameron, head of digital assets at Cartwright, Bitcoin’s unique asymmetric return profile means that even a small allocation can have a significant impact on financial performance.

The pension specialist has implemented operational procedures that prioritize asset security while maintaining flexibility for profit-taking. The investment structure features a low minimum threshold, making it accessible to pension schemes of varying sizes.

The development could pave the way for broader institutional adoption, as trustees continue to explore the potential benefits of Bitcoin and other crypto assets in diversified investment portfolios.

The above is the detailed content of UK Pension Fund Makes History With Bitcoin Investment. For more information, please follow other related articles on the PHP Chinese website!