A UK pension fund has invested 3% of its capital in Bitcoin, becoming the first British fund to do so.
A pension fund in the United Kingdom has made its first investment in Bitcoin, allocating 3% of its 50 million pounds to the asset. The operation represents a new trend for the country’s pension funds since no other British pension scheme had previously included Bitcoin in its portfolio. The fund decided to make the investment by directly purchasing Bitcoin, rather than through financial instruments like ETFs.
Current diversification strategies
According to Cartwright, a pension consulting firm that assisted the fund in the operation, the Bitcoin investment was completed in October. The move is part of a diversification strategy, aiming to take advantage of opportunities that present an asymmetric risk-return profile. Sam Roberts, director of investment consulting at Cartwright, highlighted how the addition of Bitcoin reflects the need to protect pension schemes from future economic risks through new risk management tools.
New risk management tools
Roberts stated that the inclusion of Bitcoin in the portfolio was supported by a rigorous due diligence process and the study of this asset’s long-term dynamics. This approach aims to integrate tools that can help address economic uncertainties, enabling value protection in a context of potential global turbulence.
Operational procedure and investment access
Glenn Cameron, head of digital assets at Cartwright, explained that even a minimal allocation to Bitcoin could positively influence the fund’s overall performance. To this end, the company has established operational security procedures to keep the assets safe.
The pension fund has set a low minimum threshold to allow access to the investment even for pension schemes with limited resources. This decision is part of a broader trend of interest in digital assets from institutional investors globally. Other UK pension schemes might consider this initiative.
