worldcoinindex.com
In a significant development for institutional crypto adoption in the UK, a local pension fund has allocated 3% of its holdings to Bitcoin, marking the first instance of a pension scheme in the country investing in cryptocurrency. The recommendation came from Cartwright, a pensions advisory firm, which revealed the move on Monday, though the client fund remains unnamed.
The decision, according to Cartwright, aligns with Bitcoin's impressive long-term performance. Since 2013, the cryptocurrency has surged by nearly 100,000%, a statistic that reportedly inspired the fund trustees to incorporate Bitcoin as part of their diversified, long-term strategy. “Trustees of the unnamed scheme chose a 3% Bitcoin allocation, reflecting the scheme’s extended investment horizon,” Cartwright's statement highlighted.
Sam Roberts, Cartwright’s director of investment consulting, commented on the forward-looking approach, expressing optimism that this initial move might pave the way for wider institutional adoption in the UK. “We’re proud to spearhead this groundbreaking step,” he said, adding that such a strategy mirrors the adoption path of equities by pension schemes in the 1970s. “We hope this becomes a trend among institutional investors in the UK, encouraging them to capitalize on Bitcoin’s distinct financial attributes.”
This milestone occurs amid a broader wave of institutional interest in Bitcoin worldwide. Particularly in the U.S., the approval of spot Bitcoin ETFs in January has catalyzed institutional access to Bitcoin. Heavyweights like BlackRock and Fidelity are leading this trend, managing over 1 million Bitcoin (worth roughly $67 billion at current prices) through these funds, which allow investors to gain Bitcoin exposure in a regulated format similar to stocks. As more funds globally consider cryptocurrency, Cartwright’s recommendation to the UK pension fund signals a potentially transformative shift in the asset allocation landscape.