Largest Pension Fund Explores Bitcoin as Investment Opportunity

Japan’s government pension fund announced on Tuesday its initiative to gather information regarding “illiquidity assets,” including bitcoin, as part of its exploration into potential new investment avenues.

The Government Pension Investment Fund (GPIF) of Japan, renowned as the world’s largest pension fund in terms of assets under management across various rankings, expressed its interest in acquiring “basic information” on illiquid assets beyond its current investment scope.

Presently, GPIF allocates its funds into domestic and foreign bonds, stocks, real estate, infrastructure, and private equity.

Largest Pension Fund Explores Bitcoin as Investment Opportunity
The cryptocurrency market surges as bitcoin hits an all-time high, attracting significant institutional interest.

The institution is now seeking insights into additional assets such as forests, farmland, gold, and bitcoin, exploring how these assets could potentially complement pension fund portfolios.

GPIF’s inquiry does not necessarily imply imminent investment in bitcoin or other cryptocurrencies.

The timing of GPIF’s announcement follows Bitcoin’s recent surge to an all-time high, with the world’s largest cryptocurrency rallying more than 130% over the past year.

Largest Pension Fund Explores Bitcoin as Investment Opportunity
Japan proposes legislation allowing investment funds to hold digital assets, signaling growing cryptocurrency acceptance.

This remarkable rally has been attributed, at least in part, to the introduction of bitcoin exchange-traded funds (ETFs) in the U.S. this year, which have attracted significant inflows totaling billions of dollars.

While cryptocurrency investments remain volatile, pension funds have traditionally approached them with caution.

Nonetheless, some have cautiously ventured into the realm of cryptocurrencies, as evidenced by South Korea’s National Pension Service purchasing shares of Coinbase last year.

In Japan, the government proposed legislation in February that, if enacted, would permit investment funds to hold digital assets like cryptocurrencies.

Jackson Kelley
Jackson Kelley
Jackson is a political activist and market expert. He covers the impact of politics on the market and global economy.
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