The multi-billion dollar UK pension firm Cartwright has advised a 3% allocation in Bitcoin for an unnamed pension fund. They are urging institutional investors to add Bitcoin to their investment portfolios. This is thirty times the Wisconsin Pension Fund’s allocation and the largest allocation of any Sovereign Fund in the world so far.
The allocation shows Cartwright’s forward-thinking approach. Cartwright allocated 3% of its assets under management into Bitcoin after lengthy consultations with the scheme’s trustees. The investment is secure, uses direct Bitcoin custody and has a private key split between five independent institutions.
This investment is part of a strategy to “future-proof” their schemes in the face of economic challenges. They hope this will be the start of a trend for institutional investors in the UK to catch up. Cartwright’s head of investment implementation, Steve Robinson, added that by using a custodial solution with a mechanism to trim profits quickly, they’ve opened the door for risk-averse pension schemes and other institutional investors to benefit from Bitcoin’s potential growth whilst managing volatility within a secure strategic framework.
In the US, Florida’s chief financial officer, Jimmy Patronis, wants the agency that manages the state’s retirement funds to consider including Bitcoin investments. The State of Wisconsin Investment Board and the State of Michigan Retirement System have also disclosed Bitcoin ETF investments. This is a significant move for both the UK and US pension funds, showing they are willing to explore new and innovative ways to manage their investments and secure their investors’ futures.
