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Bitcoin’s Appeal for UK Pensions
UK Follows U.S. in Institutional Crypto Adoption
Future for UK Pension Investments
In a first in the UK, a British pension fund has added Bitcoin to its balance sheet, allocating 3% of its portfolio to the cryptocurrency. Cartwright, the retirement advisory firm that originally ran the unique deal, announced on Monday that it advised the fund to make the strategic investmen According to Cartwright, Bitcoin's potential as a long-term growth asset in makes it an ideal choice, given its price increase of nearly 100,000% since 2013. The move marks a significant shift towards digital adoption for a traditionally cautious sector.
Bitcoin’s Appeal for UK Pensions
Cartwright’s director of investment consulting, Sam Roberts, expressed optimism about the decision, describing it as both “bold” and “strategic.” He noted that Bitcoin’s impressive growth record positions it as a strong addition to a pension fund, particularly one with a long-term outlook.
Roberts even compared this phase of Bitcoin adoption to the 1970s, when pension funds slowly started buying stocks. He sees a similar potential trajectory for Bitcoin—what seems unconventional today may well become the norm in the future.
Moreover, as a percentage, this is 30x higher than the Wisconsin Pension Fund’s allocation, and the largest allocation of any Sovereign Fund in the world.
UK Follows U.S. in Institutional Crypto Adoption
This UK pension fund’s Bitcoin allocation mirrors a rising trend in the United States, where institutional interest in crypto assets has been accelerating, especially since January’s approval of several spot Bitcoin ETFs. These ETFs, offered by big names like BlackRock and Fidelity, allow investors to gain Bitcoin exposure without directly holding it.
Together, these funds have acquired over 1 million Bitcoin, a stake worth around $67 billion at today’s prices. The U.S. trend has prompted institutions worldwide to pay closer attention to digital assets, making the UK’s foray into Bitcoin less surprising.
Future for UK Pension Investments
In short, Cartwright expects this move to inspire more UK pension funds to consider Bitcoin and other digital assets. With clearer regulatory guidelines emerging, Roberts believes that more institutional investors will come to see Bitcoin as a valuable portfolio asset. This step might even spark a broader trend across the industry, signaling a gradual yet impactful change in the UK’s approach to retirement investments.