[Blockchain Today Reporter Seo-yeon Jang] It is reported that KiwiSaver, a New Zealand retirement pension fund, invested 5% of its assets in Bitcoin (BTC). Kiwi Saver is New Zealand’s pension system introduced to prepare for retirement by increasing household savings and to reduce the share of high real estate assets in the household sector.
According to Cointelegraph reports, James Grigor, Chief Investment Officer of New Zealand Fund Management, cited the similarity between bitcoin and gold as one of the biggest reasons for the adoption of the transaction. “If you like gold investing, you shouldn’t ignore bitcoin,” he told New Zealand news agency Stuff. “Over the next five years, BTC will be featured in more kiwisaver plans.
Ander explained that he bought his first bitcoin last October, when it was $10,000. To carry out this transaction, the New Zealand fund management team had to change the proposal document to allow cryptocurrency investment.
Bitcoin’s price peaked at $61,000 at the beginning of this month, and Kiwi Saver was able to earn six times the profit in five months. Bitcoin’s price has softened last week, but the pension fund has made huge BTC profits.
“Kiwi Saver was built mostly through traditional asset classes,” Ander said, “but other opportunities have emerged.” Bitcoin’s case is an aggressive combination, but it’s an asset class as it helps provide the best retirement life people can get.
While hedge funds and family offices continue to accept bitcoin, pension funds are expected to be among the slowest to adopt digital asset classes. However, as institutional permits increase, adoption may accelerate.
American Grayscale noted that pension funds are already being invested in digital assets. Grayscale CEO Michael Sonnenshein said: “The size of the allocation is growing rapidly.”
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