New Zealand pension fund invests 5 per cent in Bitcoin
KiwiSaver opens the doors to bitcoin in New Zealand for pension funds.
KiwiSaver Growth Strategy, a $350 million pension fund run by New Zealand Wealth Funds Management, has invested 5 per cent of its assets in Bitcoin (BTC), providing further evidence of Bitcoin Bank increasing institutional investor interest in the asset class.
As James Grigor, head of investments at New Zealand Funds Management, explains, the market-leading cryptocurrency has similar characteristics to gold, which he cites as a key reason for the investment.
„If you invest in gold without hesitation, then you can’t really turn down Bitcoin,“ Grigor accordingly tells a New Zealand news agency. The cryptocurrency is therefore set to be incorporated into more and more KiwiSaver financial products over the next five years.
Bitcoin has climbed to more than 61,000 US dollars
As the investment chief goes on to explain, his company first tried its hand at Bitcoin in October, when the price was still at 10,000 US dollars.
Since then, Bitcoin has climbed to more than 61,000 US dollars, giving the asset management firm a more than 5-fold increase in just five months. Although the price has recently corrected slightly downwards again, the bond fund nevertheless shows a considerable profit.
Although KiwiSaver consists „mostly of traditional asset classes“, as Grigor states, they do not want to close their eyes to new opportunities. Bitcoin’s massive appreciation, he says, can help provide investors with the best possible annuity.
While hedge funds and wealthy private investors are already opening up to Bitcoin, pension funds are still lagging behind. The emergence of new on-ramps could now accelerate this process all the more.
Influential crypto asset management firm Grayscale confirms that pension funds are indeed increasingly interested in cryptocurrencies. „The size of the investments they are making is increasing at the same pace,“ as Grayscale CEO Michael Sonnenshein additionally affirms.