Institutional investors are beginning to take notice of the popularity and value of bitcoin, as seen with the Government Pension Investment Fund (GPIF) of Japan seeking information on potential new investments in illiquidity assets like bitcoin. Despite recent surges in cryptocurrencies, GPIF remains cautious due to the volatility and risks associated with digital assets.
While GPIF currently invests in domestic and foreign bonds and stocks, real estate, infrastructure, and private equity, the fund is exploring the possibility of adding other assets like forests, farmland, gold, and bitcoin to its portfolio. However, there is no indication that GPIF will actually invest in these assets at this time.
Pension funds worldwide have shown hesitancy towards investing in cryptocurrencies due to their volatility and risks. However, some have begun to explore the possibilities. South Korea’s National Pension Service purchased shares of Coinbase last year, while Japan is considering legislation that would allow investment funds to hold digital assets like cryptocurrencies.
As the financial landscape shifts with the inclusion of cryptocurrencies in traditional investment portfolios, institutional investors like GPIF are still in the research phase but could signal a significant change in the future.
