#Bitcoin Allocation for Pension Funds#

In recent years, the price of Bitcoin has surged, attracting a growing number of institutional investors, including pension funds. Pension funds in Wisconsin and Michigan, US, have become one of the largest holders of US stock market funds focusing on cryptocurrencies, while some pension fund managers in the UK and Australia have made small allocations to Bitcoin through funds or derivatives in recent months. Mercer, a UK pension fund consultancy, has received numerous inquiries since the US election, with trustees not wanting to be ignorant of the hot asset class, and most pension funds have shifted towards regulated US spot Bitcoin or Ethereum ETFs approved last year. Cartwright, a UK pension consultancy, has facilitated the first Bitcoin transaction, with an undisclosed small pension scheme directly investing approximately £1.5 million in Bitcoin. AMP, an Australian pension fund manager, has also used Bitcoin to enhance returns, with its portfolio moderately allocated to Bitcoin futures. Although funds allocating to Bitcoin and other cryptocurrencies are still a minority in the pension industry, most consultants are reluctant to advise clients to venture into cryptocurrencies, but with the continued rise in Bitcoin prices and gradual regulatory improvements, more pension funds may join the ranks of those allocating to Bitcoin in the future.