In conversation with business advisor, the Wagonwright said to have helped an unnamed British pension fund buy Bitcoin. This is the first case in the country and opens up the possibility of new ones.
According to the article, the company that works as a consultant recommends that funds have a 2 to 3% exposure to the largest cryptocurrency on the market. Other sources state that the fund manages around £50 million (R$374 million).
“The logic is that this is an asymmetric investment opportunity. If you invest 2%, you can lose a maximum of 2% – if it becomes zero.”said Glenn Cameron, head of digital assets at Cartwright. “But the upside potential is significant.”
“If you look at bitcoin’s correlations with 14 other asset classes, the 60-day correlation hovers around zero. Investors need a certain investment horizon, which must fit within their risk appetite.”
On social media, community members noted that this exposure is 30 times greater than that of the US state of Wisconsin bought R$834 million worth of Bitcoin through his pension fund.
British pension fund buys Bitcoin
Many managers view Bitcoin as a unique asset, with no competitors, and its response is difficult to predict. In addition to excellent performance in times of plenty, cryptocurrency has also presented itself as a good hedge against geopolitical conflict.
Sam Roberts, investment advisory director at Cartwright, is another believer in this thesis.
“Managers are increasingly looking for innovative solutions to prepare their funds for future economic challenges. This allocation to bitcoin is a strategic measure that, in addition to providing diversification, also taps into an asset class with a unique asymmetric risk-return profile.”
Although Bitcoin has become famous for its 80% declines in the past, the asset has matured since the adoption of ETFs in the US and continues to deliver spectacular returns. For example, a The report points out that BTC is the best asset of 2024 so far.
It appears that Cartwright will continue to offer this strategy for more funds.
“The solution created also has a low minimum investment threshold, meaning this option is available to pension funds of all sizes, unlike many historical investment ideas when they were first available”said Roberts.
Finally, David Bailey, CEO of Bitcoin Magazine, pointed out that major governments are expected to purchase billions of Bitcoin sooneither by sovereign wealth funds or by their own central banks. Given this, Britain has a chance to come out ahead in this race.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
