The recent all-time high reached by Bitcoin (BTC) above 100k mark stirred up a lot of interest particularly among more conservative investors. The potential for high returns has led pension funds to venture into the crypto market. The latest surge in the prices of Bitcoin has marked yet another peak in the already existing growth of crypto pension funds.
As outlined in the Financial Times report, a large number of Crypto pension funds are shifting their focus towards US regulated ETFs which allow for investment in Bitcoin
Ethereum and other cryptocurrencies without technically owning them. Such interest from traditional schemes is anticipated to enhance institutional adoption particularly with the new Trump administration coming up.
Investments in ETFs and Crypto Pension Funds
Pension funds from Wisconsin and Michigan lead investments in crypto funds in the US, with the former surpassing other US funds in bitcoin sales. UK and Australian pension schemes have begun to dip their toes into bitcoin investments as well, but the amount is not that significant.
The State of Wisconsin Investment Board particularly holds nearly $155 million into the Bitcoin ETF that was offered by BlackRock. Michigan on the other hand is the sixth largest holder in Grayscale’s Ethereum ETF with injected $12.9 million into it. Likewise, Michigan maintains an important stake in Cathie Wood’s ARK 21Shares bitcoin ETF.
Pension Funds Expected To Surge With The Help Of Cryptocurrency
Sam Roberts, director of investment consulting at Cartwright, reported that the pension industry will expand due to crypto investment having a gradual effect. Altogether Roberts states over 50 people have approached the firm as they are keen on their retirement plans to be based on crypto.
Taking into consideration the rise of crypto pension funds after the downturn of the digital asset market, many suggest that the worst has passed. Analysts insist that with the growth of the crypto industry between institutions, the crypto industry as a whole will expand. A strong example of this would be Alex Pollak as he works at 21Shares the head of the UK and Israel office and said: “The challenges are diminishing… I foresee greater institutional adoption.”
interactions. Along with all this optimism there are always naysayers like Daniel Peters an Aon’s global investment practice partner who remains doubtful regarding the crypto pension funds. Peters in his view suggested that pension funds looking at investing in alternative assets might roll over to hedge funds.
Bitcoin’s spike after the Trump Inauguration
Traders and crypto specialists are observing the recent Bitcoin surge as Trump is inaugurated on the 20th of January. There are possibilities of movements pre and post the inauguration which would spark volatility in the market.
Its been suggested that the rise in the crypto pension funds allocation in a credible digital asset set is because of Bitcoin ETFs. Investors who waffle are on the edge to see how the volatility will eventually impact them.
Within the last day, Bitcoin’s cost has gone up by 3% and is being sold for 99,178 dollars. The lowest price for the past 24 hours stood at 96,505 while the highest price stood at 100,781. Apart from that the trading figures for the last 24 hours have increased by 11 percent which connotes an increasing trend of interest among traders.