An undisclosed UK pension fund has allocated 3% of its AUM of £50 million GBP (~$64.9 million) for direct Bitcoin purchases instead of BTC-ETF. This was reported by Corporate Advisor.
According to the report, the private key is distributed among five independent institutions.
This marks the first initiative of its kind in the country.
The fund’s partner, management firm Cartwright, described it as a “bold step that reflects the foresight of the trustees.”
The implementation was preceded by “extensive consultations on ESG, investment portfolio, and security issues.”
Cartwright has also launched a scheme allowing employers to pay Bitcoin directly into employees’ wallets. According to the company, five organizations have already expressed interest.
The relative investment size of 3% of assets under management exceeds similar figures from other pension funds. For instance, the Wisconsin Investment Board spent $163 million — 0.1% of AUM — on Bitcoin-based ETFs.
Beyond Bitcoin
The Michigan state pension fund disclosed the acquisition of 460,000 shares of Grayscale Ethereum Trust (ETHE) worth over $10 million and 460,000 shares of Grayscale Ethereum Mini Trust ETF (ETH) for ~$1.1 million.
This is the first initiative among pension funds since the launch of spot Ethereum-ETFs in July. The organization has become one of the top five holders of ETHE.
Bloomberg analyst Eric Balchunas called Michigan’s decision “a big win for Ethereum.”
Not only did Michigan’s pension buy Ether ETFs but they bought more than they did of bitcoin ETFs, $10m vs $7m, this despite btc being up a ton and ether in the gutter. Pretty big win for ether which could use one. https://t.co/0E6O6pKK8S
— Eric Balchunas (@EricBalchunas) November 4, 2024
“$10 million versus $7 million in [earlier purchase] BTC-ETF. And this despite Bitcoin being up a ton and Ether in the ‘gutter’,” commented the expert.
Back in November, the state of Florida reported cryptocurrency reserves of $800 million.