Traditionally conservative investors are increasingly exploring Bitcoin and cryptocurrencies as part of their portfolios.
Pension schemes in the US, UK and Australia have started to allocate small portions of their portfolios to Bitcoin.
A FT report dated 16 January 2025 gave the example of the State of Wisconsin Investment Board becoming the 12th largest shareholder of BlackRock’s Bitcoin ETF, with holdings worth about $155 million after a 50% price increase in the fourth quarter of 2024 .
Explore: Bitcoin outperformed major asset classes in 2024, particularly in the fourth quarter, according to CoinGecko’s annual report
Pension fund investments often leverage regulated ETFs
The trend is not limited to the United States. Notably, other countries are also making great strides. In Australia, AMP has included Bitcoin futures in its portfolios to enhance returns while managing the risks associated with direct ownership. In the UK, consultancy Cartwright has advised on direct Bitcoin allocations for small pension schemes.
BREAK:
Australian pension fund AMP invests $27 million #Bitcoinbecoming the first major pension fund to do so
This is just the beginning pic.twitter.com/fvp0ilKjZX
— Swan (@Cigno) December 13, 2024
Likewise, the Michigan pension fund invested in Grayscale’s Ethereum ETF and the ARK 21Shares Bitcoin ETF, reflecting a growing interest in cryptocurrency-focused ETFs.
The State of Michigan Retirement System has #Bitcoin ETF exposure under 13F SEC filings.
Pension Funds are arriving pic.twitter.com/Gx9IguO3Ov
— Thomas | heyapollo.com (@thomas_fahrer) July 26, 2024
Spot Bitcoin ETFs have gained traction since their approval in early 2024, simplifying access for institutional investors and driving significant inflows into the cryptocurrency market.
In the UK, an unnamed pension scheme has allocated 3% of its £50 million portfolio to Bitcoin, marking the first such move in the country.
The Trump administration’s pro-crypto stance has bolstered optimism for institutional adoption. Policies aimed at reducing regulatory barriers could further accelerate pension fund investments in digital assets.
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Related:Which Cryptocurrencies Will Explode in 2025 When Trump Takes Office
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