UK-based pension advisory firm Cartwright has revealed that an unnamed pension fund in the United Kingdom has allocated 3% of its portfolio to Bitcoin. This notable investment decision was made after extensive training and due diligence, Cartwright reported in a November 4 notice.
According to Steve Robinson, Cartwright’s Head of Investment Implementation, this move into Bitcoin is aimed at “reducing reliance on employer contributions,” leveraging the fund’s long-term investment horizon to explore new asset classes like cryptocurrency. Cartwright declined to provide further details on the pension scheme’s specifics or the total value of the investment.
Are Pension Funds Moving Towards Crypto Investments?
As the acceptance of digital assets grows globally, UK pension funds are exploring cryptocurrency as a diversification option. Cartwright’s report suggests a trend toward crypto adoption among institutional investors, particularly those with long-term investment perspectives.
This UK development is part of a broader shift among pension funds worldwide. For example, Legal and General, a major UK pension and investment firm managing $1.5 trillion, recently announced it is considering tokenized fund options. Across the globe, South Korea’s national pension service reported approximately $34 million in exposure to MicroStrategy, a company heavily invested in Bitcoin. Meanwhile, the State of Michigan’s pension fund held around $18 million in Bitcoin and Ether exchange-traded products as of September 30.
UK’s Regulatory Landscape and Crypto Investments
In the wake of the UK’s July election, the country’s new Labour-led government may adopt a cautious stance on digital asset regulation, which analysts suggest may not be an immediate priority. The Financial Conduct Authority (FCA) currently oversees crypto regulations in the UK, focusing on consumer protection and compliance among crypto firms.
This pension scheme’s Bitcoin allocation signifies a shift in traditional finance’s relationship with digital assets, underscoring the evolving role of cryptocurrencies in long-term investment portfolios.
