beginingCryptocurrenciesBitcoinThe world's largest pension fund is considering bitcoin

    The world's largest pension fund is considering bitcoin

    Japan's Government Pension Investment Fund (GPIF), the world's largest pension fund, is exploring the potential to invest in "illiquid assets" such as bitcoin as part of its exploration of new investment opportunities. The GPIF, which currently invests in traditional assets such as bonds, stocks and real estate, is seeking information on how assets such as forests, farmland, gold and cryptocurrencies can be integrated into its portfolio. Apparently their goal is to take advantage of the upcoming bull crypto market in 2024-25 and make billions.

    On March 19, GPIF officially announced the development of a new long-term investment policy in response to significant changes in the economy and society and rapid technological progress.

    The biggest pension fund is interested in Bitcoin

    In response to the new challenges, GPIF launched a five-year research plan to explore innovative methods of investment diversification with an emphasis on sustainability and risk management.

    As part of this plan, GPIF requested data on various potential investment diversification tools, including information on assets that the company considers "illiquid" and does not own. Such assets include cryptocurrencies such as Bitcoin, precious metals and other assets.

    However, it is necessary to slow down the possible misplaced optimism a little. The new GPIF notice is "only" a request for information. It in no way guarantees that the firm will expand its operations to include new assets such as Bitcoin in the future. Instead, the company will consider whether to conduct additional research in the future based on the data collected.

    At the time of writing, the price of BTC is around 63,017 USD according to KMC.

    What is GPIF?

    The GPIF was established in 2006 by the Japanese government and mainly focuses on investments in basic infrastructure funds. That is, those who invest in assets necessary for social and economic activities. The company currently diversifies investments in traditional assets such as domestic and foreign stocks and bonds, as well as alternative assets such as infrastructure and real estate.

    In the 2022 annual report, GPIF emphasized that diversification is the company's main investment strategy. The text directly states:

    “Our core investment strategy is diversification by asset class, region and time frame. Although market prices may fluctuate in the short term, GPIF will take full advantage of our long-term investment horizon to achieve investment returns in a more stable and efficient manner…”

    The GPIF's total assets under management were ¥225 trillion (US$1.54 trillion) at the end of December 2023, making it the world's largest pension fund.


    While the GPIF is only beginning to consider potentially adding bitcoin to its portfolio, some global pension funds have already adopted bitcoin-linked assets. In November 2023, South Korea's National Pension Service announced the purchase of over 280,000 shares of Coinbase.


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