Japan's Pension Fund Explores Bitcoin as an Investment

Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund by assets under management, announced that it is seeking information on "illiquidity assets," including bitcoin, as part of its exploration into potential new investments.

The GPIF currently allocates funds to various investment avenues such as domestic and foreign bonds, stocks, real estate, infrastructure, and private equity. However, it is now interested in gaining insights into other illiquid assets like forests, farmland, gold, and bitcoin, aiming to broaden the range of options available for pension funds.

While the GPIF is exploring information on bitcoin and other assets, there is no explicit indication that it plans to invest in cryptocurrencies. The fund is primarily focused on gathering fundamental knowledge and understanding the potential role of such assets in diversifying pension fund portfolios.

This announcement from the GPIF comes amid a surge in bitcoin's value, with the cryptocurrency hitting record highs and witnessing a significant rally of over 130% in the past year. The recent launch of bitcoin exchange-traded funds (ETFs) in the United States has further fueled interest and inflows into the cryptocurrency market.

Despite the growing popularity of cryptocurrencies, pension funds have approached investments in digital assets cautiously due to their volatile nature. While some funds, like South Korea's National Pension Service, have shown limited interest by investing in cryptocurrency-related companies like Coinbase, many remain hesitant to fully embrace the asset class.

In Japan, where regulatory frameworks for digital assets are evolving, the government proposed legislation in February that would permit investment funds to hold cryptocurrencies if enacted. This potential shift in regulations reflects a broader trend of increasing acceptance and integration of cryptocurrencies into traditional financial systems.

Source: CNBC