- Pension funds increase crypto investments driven by Bitcoin’s rising value and improved market stability.
- Wisconsin and Michigan pension funds lead in crypto ETFs with significant stakes in Bitcoin and Ethereum.
- UK and Australian pension schemes explore crypto to boost returns as institutional adoption gains traction.
Global pension funds are boosting exposure to cryptocurrencies as signs of rising institutional interest in digital assets mount. Recent filings by pension schemes in the U.S., U.K. and Australia disclose substantial allocations to Bitcoin and Ethereum focused funds.
U.S. Pension Funds Take the Lead
Wisconsin and Michigan have made significant investments in cryptocurrency exchange traded funds (ETFs) through pension funds. Shares worth $155 million in BlackRock’s Bitcoin ETF are now held by Wisconsin’s Investment Board. This fund surged 50% in value during the past quarter. Grayscale’s Ethereum ETF holds $12.9 million worth of Michigan’s state pension fund, according to total assets. It also has $11 million invested in the ARK 21Shares Bitcoin ETF, known to have gained 14% since the recent elections.
Regulatory Clarity Fuels Institutional Adoption
Experts link this increasing interest to regulatory developments and Bitcoin’s performance. Analysts note Bitcoin doubled in value last year, surpassing $100,000. Industry stakeholders predict further gains as a pro-crypto administration takes office in the U.S. Besides, pension funds have found regulated ETFs a safer gateway to crypto investments.
UK and Australia Follow Suit
A UK-based £50 million pension scheme recently allocated £1.5 million to Bitcoin directly. Cartwright, a consultancy advising on the deal, stated more pension funds are exploring crypto. Similarly, Australia’s AMP group added Bitcoin futures to its portfolios, citing its potential to enhance returns.
Institutional caution persists due to past setbacks, such as the Ontario Teachers’ Pension Plan losing $95 million in the FTX collapse. Despite these challenges, crypto-related funds have gained traction as risk appetite gradually returns.
Growing Individual Interest
Individual savers are also pressuring pension providers for crypto options. Cartwright reported over 50 inquiries from investors seeking full crypto exposure. As a result, multiemployer pension funds are exploring dedicated Bitcoin funds to attract members.
The trend reflects a shift in institutional sentiment, driven by Bitcoin’s rising value and improved market stability. Pension funds’ participation underscores the growing acceptance of cryptocurrencies as viable investment assets.
