New Zealand retirement fund reportedly allocates 5% to Bitcoin


KiwiSaver Growth Strategy, a $350 million pension plan managed by New Zealand-based Wealth Funds Management, has reportedly invested 5% of its assets in bitcoin (BTC), highlighting the steady flow of institutional investors entering the digital asset market.

Bitcoin’s striking resemblance to gold was cited as one of the main reasons, according to James Grigor, chief investment officer at New Zealand Funds Management.

If you like investing in gold, you really can’t avoid bitcoin, he told Stuff, a New Zealand news magazine, adding that BTC will be included in more KiwiSaver products over the next five years.

Grigor explained that his company first acquired bitcoins in October, when they had a value of $10,000. To make the deal possible, New Zealand Fund Management had to amend its offering documents to allow investments in the cryptocurrency.

Earlier this month, the price of bitcoin peaked at $61,000, which would give KiwiSaver a 6x return in just five months. Although the price of bitcoin has weakened in the past week, the pension fund is sitting on high returns in BTC.

Grigor explained that most of KiwiSaver’s assets are in traditional asset classes, but noted that there are other opportunities as well. In the case of bitcoin, this is an asset class that, thanks to its aggressive composition, can help people have the best possible retirement.

While hedge funds and family offices are gradually moving to bitcoin, pension funds are perhaps the slowest to move to the digital asset class. More institutional constraints can help speed up implementation.

In the US, Gray said, pension funds already have access to digital assets. The size of the contingent is also increasing rapidly, said Michael Sonnenschein, CEO of Grayscale.

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