A UK-based pension fund has allocated approximately 3% of its £50 million AUM (~$64.9 million) into direct Bitcoin purchases, avoiding BTC-ETF products, according to Corporate Advisor.
Securing the Investment
To ensure security, the private key for the Bitcoin investment has been distributed among five independent institutions. This marks the first instance of a British pension fund directly investing in Bitcoin, signaling a shift in approach to cryptocurrency investments.
Comments from Cartwright
Cartwright, the fund’s managing partner, described the move as a “bold and forward-thinking decision by the trustees.” The project followed extensive consultations on ESG principles, portfolio allocation, and security concerns.
In addition, Cartwright introduced a scheme allowing employers to pay salaries directly in Bitcoin. According to the company, five employers have already expressed interest in this option.
Comparison with Other Pension Funds
The fund’s 3% Bitcoin allocation surpasses that of other pension funds. For instance, the Wisconsin Investment Board invested $163 million (0.1% of AUM) in Bitcoin ETFs.
Interest in Ethereum
Meanwhile, the Michigan pension fund recently acquired 460,000 shares of Grayscale Ethereum Trust (ETHE) worth over $10 million and an additional 460,000 shares in the Grayscale Ethereum Mini Trust ETF, valued at ~$1.1 million. This makes the organization one of the top five holders of ETHE, highlighting growing institutional interest in Ethereum.
Expert Insight
Bloomberg’s Eric Balchunas highlighted Michigan’s move as a “big win for Ethereum”:
“$10 million in Ethereum versus $7 million in earlier BTC-ETF investments shows rising confidence in ETH despite Bitcoin’s recent rally,” said Balchunas.
Future Plans
Recently, Florida authorities revealed state cryptocurrency reserves totaling $800 million, underscoring the expanding role of digital assets in institutional portfolios.
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