UK Pension Funds Now Investing in BTC, but the crowd doesn't like it!
I noticed these headlines in my feed recently, pertaining to the news of an 'un-named UK pension fund having invested 3% of its assets in Bitcoin...
Irresponsible...?
Most of the financial news articles have a negative view of this move, with various commentators regarding the move as...
- 'gambling with retirees' futures
- 'focussing on the short term'
- 'investing in something which has no intrinsic value'
- 'taking punts on basket case asset classes'
In fairness the article above, from Sky News, does go on to look at the positives but it leads with the negatives, which sets the overall bias.
Or ahead of the curve....
I'm not sure where I got the figure of 5%, as in invest no more than 5% of your assets into risky ventures.
This is precisely what this one pensions company seems to be doing, only more cautiously which seems reasonable given that it's investing other people's money and this approach is defo not in line with public opinion.
So you can't blame them for this extra cautious approach as there is a risk of alienating the majority of their investors.
To get the positive spin on it, you need to look at the advisors to the un-named pensions company.
Their main point about the 3% investing is that there is a chance that BTC can outperform compared to other asset classes.
And there are unspecified mechanisms in place for the company to take profits at strategic moments.
Presumably this means they have already booked some with the 50% increase in value since they bought back in October!
I mean it's maybe sheer luck with the timing, but they've done pretty well...
Final thoughts...
I think we are going to see more and more of this sort of thing, which would be tasty, if just 1% of pension funds could be allocated to BTC that would mean £100 billion being shifted into crypto, which isn't going to hurt the price!
Posted Using InLeo Alpha
I see those type of comments about crypto investments in the Portuguese TV about every time that a debate has been going, and many comparisons to "pyramid schemes" profits... investing in what is not palpable, or "seen"... I don't understand why the journalism tends to go with the devilish central bank "speech" about crypto.
Anything < 5% of a portfolio can't be regarded as unduly risky. IMO.
Yes! Very well noticed... The fear of losing those assents it would be lessen when in perspective with the rest of the wellness that we possess
Good for the UK pension funds!
As long as they are spreading the risk then why not? If they had invested in it a few years ago they would be sitting pretty, but you have to expect that some investments will not pay off.
They are certainly doing OK as we speak, with the BTC Vest for now, probably a good long term move!
Smart move imo,
They kept the investment to a small percentage of available holdings and as you pointed out likely already took some profits. They got their foot in the door and with a successful run and likely others watching there is allot of potential upside here.
If it becomes a global trend we are talking trillions moving in!