Bitcoin in Pension Funds: A Growing Trend
– Bitcoin is gaining attention among pension funds as an investment option. – Cryptocurrencies can help transform conservative investment policies of pension funds. – UK pension funds are now considering Bitcoin allocation. – An unnamed UK pension fund allows a maximum 3% Bitcoin allocation.
– The inclusion of Bitcoin matches the fund’s long-term investment time horizon and reduces dependence on employer contributions. – Cryptocurrencies, such as Bitcoin, offer potential for higher returns, making them attractive for risk-averse pension funds. – Examples of institutions investing in cryptocurrencies:
– Legal and General (UK) is considering investing in tokenized funds.
– US-based State of Wisconsin Investment Board (SWIB) has invested about $160 million in cryptocurrencies. – Michigan’s state pension fund invested approximately $10 million in Ethereum ETFs. Regulation and Future of Cryptocurrencies in the UK
– The UK government is moving towards regulating cryptocurrencies.
– The Financial Conduct Authority (FCA) is working on guidelines and legislative proposals for stablecoins and staking services. – New regulations may lead to more confidence in the cryptocurrency market and create a favorable environment for Web3 technologies and blockchain innovation. For more information, visit: [link to the original article]
