The British pension fund Cartwright, known for its specialization in hybrid pension plans, announced this Monday the allocation of 3% of the value of its fund in bitcoin (BTC). This decision, described as a “bold step”, reflects the progressive nature of the trustees involved, according to that entity.
According to Cartwright, the move aligns with a long-term investment strategy, backed by robust risk management at both the asset and scheme levels, they argued.
The assignment, which was the first of its kind in the United Kingdom and was valued at more than $60 million, was reportedly carried out following a training and due diligence process.
Sam Roberts, director of investment consulting at Cartwright, a pension fund valued at about $2 billion, said that “trustees are increasingly seeking innovative solutions to future-proof their plans in the face of economic challenges.”
“This bitcoin allocation is a strategic move that not only offers diversification, but also takes advantage of an asset class with a unique asymmetric risk-return profile,” Roberts told local press.
Roberts added: “Our approach ensures that plans can benefit from significant potential advantages, while limiting potential disadvantages. “Integrating bitcoin into a pension scheme’s investment strategy is a bold step that reflects the progressive nature of the trustees involved.”
As reported, the solution created by Cartwright, a fund created more than 30 years ago, has a minimum investment threshold, allowing this option is available for pension plans of all sizes.
“We are confident that this strategic move, along with our secure custody approach, will provide long-term value to plan members, while offering an innovative way to reduce reliance on employer contributions,” Roberts commented.
This is not the first time Cartwright has shown interest in BTC. Recently, in October, Glenn Cameron, senior investment consultant at the firm, stood out the difference of bitcoin compared to other cryptocurrencies, mentioning that BTC is “completely different” due to its “finite nature.”
The interest of pension funds in bitcoin is not an isolated phenomenon. At the beginning of this year, CriptoNoticias reported that the Japanese Government Pension Investment Fund, the largest in the world, was exploring the idea of investing in BTC. This trend suggests growing recognition of bitcoin’s potential within long-term investment strategies.
The expectation about the impact of these funds is high. From the Standard Chartered bank, it has been predicted that BTC could reach USD 200,000, driven by the inflow of pension funds, reflecting a widespread optimism about the role of cryptocurrencies in the future of long-term investments.
This article was created using artificial intelligence and edited by a human Editor.