Largest global pension fund considers diversifying with Bitcoin investment

Largest global pension fund considers diversifying with Bitcoin investment

Bitcoin News
March 19, 2024 by Diana Ambolis
310
The Government Pension Investment Fund of Japan, the world’s largest pension fund, expresses interest in exploring Bitcoin as a potential diversification option. Japan’s Government Pension Investment Fund (GPIF), recognized as the largest pension fund globally, is exploring Bitcoin as a potential diversification avenue. The GPIF officially disclosed on March 19 its initiative to formulate new
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The Government Pension Investment Fund of Japan, the world’s largest pension fund, expresses interest in exploring Bitcoin as a potential diversification option.

Japan’s Government Pension Investment Fund (GPIF), recognized as the largest pension fund globally, is exploring Bitcoin as a potential diversification avenue.

The GPIF officially disclosed on March 19 its initiative to formulate new long-term investment strategies, driven by significant shifts in the economy, society, and rapid technological advancements.

In response to emerging challenges, the GPIF is embarking on a comprehensive five-year research program aimed at investigating innovative approaches to diversify investments, with a strong focus on sustainability and risk mitigation.

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As part of this initiative, the GPIF has solicited data on various potential diversification tools, including assets categorized as “illiquid” that are presently not held in its portfolio. These assets encompass cryptocurrencies like Bitcoin, precious metals such as gold, and other alternatives.

It’s essential to note that the GPIF’s announcement serves as a request for information and doesn’t guarantee immediate expansion into new assets like Bitcoin. Instead, the organization intends to evaluate potential future research initiatives based on the collected data.

Despite reaching out to the GPIF for comment on its prospective involvement with Bitcoin, the sources had not received a response by the time of publishing.

Established in 2006 by the Japanese government, the GPIF primarily focuses on investing in core infrastructure funds vital for societal and economic activities. Presently, its portfolio includes traditional assets like domestic and foreign stocks and bonds, alongside alternative investments such as infrastructure and real estate.

As of December 2023, the total assets under management by the GPIF stood at 225 trillion Japanese yen ($1.54 trillion), solidifying its status as the world’s largest pension fund.

Although the GPIF is in the initial stages of considering Bitcoin for potential inclusion, several global pension funds have already embraced Bitcoin-related assets. In November 2023, South Korea’s National Pension Service disclosed the acquisition of over 280,000 shares of the United States-based Coinbase.