TechFlow reported on January 16 that, according to the Financial Times, global pension funds are beginning to explore allocations into bitcoin. As of September 30, 2024, the Wisconsin Investment Board held approximately $155 million worth of BlackRock's Bitcoin ETF, making it the 12th largest shareholder; Michigan became the sixth-largest shareholder in Grayscale’s Ethereum ETF with a holding value of $12.9 million, and also ranked as the 11th largest shareholder in ARK 21Shares' Bitcoin ETF.
In the UK, Mercer, a pension fund advisory firm, has received numerous inquiries since the U.S. election day, with trustees seeking to understand this emerging asset class. Cartwright Consulting has already facilitated a direct bitcoin investment of £1.5 million from a small, unnamed pension scheme aiming to close its funding gap through outsized returns. Over 50 individual savers have now expressed interest in transferring their entire pensions into cryptocurrency, while Cartwright is currently negotiating with two multi-employer pension funds to establish a bitcoin fund.
AMP, one of Australia’s largest pension fund managers, has made modest allocations via bitcoin futures. Steve Flegg, senior portfolio manager, stated that while cryptocurrencies are high-risk and innovative, their market size and growth potential cannot be ignored. However, the report notes that pension funds investing in crypto assets remain a minority, with most investment advisors still cautious about recommending cryptocurrency investments to clients.
