Japan’s $1.5 Trillion Pension Fund Explores Bitcoin Diversification

The Government Pension Investment Fund of Japan (GPIF), managing assets worth ~$1.5 trillion, is considering portfolio diversification options, including the first cryptocurrency.

Breaking: Japan’s Government Pension Investment Fund, the world’s largest pension fund with $1.5 trillion under management, announced that it will seek information on business diversification, including Bitcoin, gold, forests and farmland.

This announcement is a request for…

— Wu Blockchain (@WuBlockchain) March 19, 2024

According to Bloomberg, this entity is the largest of its kind globally.

GPIF has requested public information on illiquid assets such as Bitcoin, gold, forests, and farmland. The data should include real examples of pension fund investments.

Currently, GPIF invests its reserves in traditional assets like domestic and foreign stocks and bonds, as well as alternative instruments such as real estate.

This initiative is part of a five-year study to develop innovative investment strategies in response to economic and social changes and rapid technological advancements.

The data collection phase does not necessarily indicate an intention to expand the investment declaration in the future. The information gathered may form the basis for future research, according to the presentation.

In 2020, in the United States, pension plans with investments in the first cryptocurrency were offered by DAiM, as well as Bitwage with Gemini.

In 2021, the Growth Fund under New Zealand’s voluntary pension savings program by NZ Funds Management invested 5% of the $350 million it managed in digital gold.

In 2022, Fidelity Investments planned to offer clients the option to accumulate Bitcoin in 401(k) retirement accounts with their employers’ consent. The initiative later faced pressure from US lawmakers.