UK Pension Fund Makes Historic Move, Allocates 3% of Portfolio to Bitcoin

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In a first for the UK, a British pension fund has added Bitcoin to its balance sheet, allocating 3% of its portfolio to the cryptocurrency. Cartwright, the pension advisory firm behind this one-of-a-kind move, announced on Monday that it had advised the fund to make this strategic investment.

According to Cartwright, Bitcoin’s potential as a long-term growth asset made it an ideal choice, especially given its nearly 100,000% price increase since 2013. This step marks a significant shift towards embracing digital assets for a traditionally cautious industry. 

Bitcoin’s Appeal for UK Pensions

Cartwright’s director of investment consulting, Sam Roberts, expressed optimism about the decision, describing it as both “bold” and “strategic.” He noted that Bitcoin’s impressive growth record positions it as a strong addition to a pension fund, particularly one with a long-term outlook.

Roberts even compared this phase of Bitcoin adoption to the 1970s, when pension funds slowly started buying stocks. He sees a similar potential trajectory for Bitcoin—what seems unconventional today may well become the norm in the future.

Moreover, as a percentage, this is 30x higher than the Wisconsin Pension Fund’s allocation, and the largest allocation of any Sovereign Fund in the world. 

UK Follows U.S. in Institutional Crypto Adoption

This UK pension fund’s Bitcoin allocation mirrors a rising trend in the United States, where institutional interest in crypto assets has been accelerating, especially since January’s approval of several spot Bitcoin ETFs. These ETFs, offered by big names like BlackRock and Fidelity, allow investors to gain Bitcoin exposure without directly holding it.

Together, these funds have acquired over 1 million Bitcoin, a stake worth around $67 billion at today’s prices. The U.S. trend has prompted institutions worldwide to pay closer attention to digital assets, making the UK’s foray into Bitcoin less surprising.

Future for UK Pension Investments

In short, Cartwright expects this move to inspire more UK pension funds to consider Bitcoin and other digital assets. With clearer regulatory guidelines emerging, Roberts believes that more institutional investors will come to see Bitcoin as a valuable portfolio asset. This step might even spark a broader trend across the industry, signaling a gradual yet impactful change in the UK’s approach to retirement investments.

Could this signal a new trend in retirement investments? We will come to know.