UK Pension Fund Buys $1.95M Worth of BTC In Landmark Move

In a landmark move, a United Kingdom-based pension fund managing $65 million has invested $1.95 million in Bitcoin (BTC), expanding its investment portfolio.

According to a UK pension specialist, Cartwright, the investment represents 3% of the unnamed pension fund assets under management (AUM). This makes the unnamed pension fund the first fund in the UK to invest in digital assets.

The allocation was made after an extensive training and due diligence process. Glenn Cameron, Cartwright’s head of digital assets, emphasized that the decision followed thorough discussions with the scheme’s trustees, who considered ESG factors, the investment rationale, and security measures.

Investment Strategy and Security Measures

The allocation has drawn comparisons to the Wisconsin pension fund in the United States. An X user noted that the UK-based pension fund’s allocation is 30 times greater than Wisconsin’s, representing any sovereign fund globally’s largest allocation to Bitcoin.

The fund’s decision to include BTC in its portfolio was attributed to its “long investment time horizon.” Notably, the investment involves direct ownership of BTC rather than an indirect method like an ETF. Moreover, the private key is securely split across five independent institutions.

In light of the heightened interest in digital assets, Cartwright announced plans to introduce a Bitcoin Employee Benefits scheme. This scheme would enable employers to provide BTC payments to employees through dedicated wallets. According to Cartwright, five companies have expressed interest in this program.

Growing Interest in Digital Assets

The recent investment in Bitcoin by a UK pension fund aligns with the growing interest in digital assets among pension funds in the United States. A CoinTab report highlighted the State of Michigan Retirement System’s recent acquisition of shares in Grayscale’s Ethereum ETF, making it the first U.S. state pension fund to invest in the Ether-based product.

In July, the Michigan pension fund also held 110,000 shares in the ARK 21Shares Bitcoin ETF, which accounts for roughly 0.003% of its managed assets. Similarly, Jersey City’s Employees Retirement System (ERS) has incorporated Bitcoin ETFs into its investment portfolio.

Florida’s Chief Financial Officer, Jimmy Patronis, has also advocated for digital assets, urging the state’s retirement fund managers to explore Bitcoin investments.