World's Largest Pension Fund Seeks Information on Bitcoin Under Portfolio Diversification Plan

Japan's state pension fund, GPIF, is seeking information about bitcoin as part of a broader strategy initiated in response to significant economic and societal changes and technological advancements.

AccessTimeIconMar 19, 2024 at 8:45 a.m. UTC
Updated Mar 19, 2024 at 8:53 a.m. UTC
  • Japan's state pension fund to explore bitcoin as a potential portfolio diversification tool.
  • The plan, however, does not promise a foray into bitcoin.
  • Meme Coin Liquidity Hits Record High
    00:46
    Meme Coin Liquidity Hits Record High
  • How Ledger Stax Plans to Make Self-Custody More Mainstream
    16:42
    How Ledger Stax Plans to Make Self-Custody More Mainstream
  • Why Dogecoin Is a 'Weird' Investment
    16:39
    Why Dogecoin Is a 'Weird' Investment
  • AI Tokens Surge as Nvidia Becomes World’s Most Valuable Company
    00:47
    AI Tokens Surge as Nvidia Becomes World’s Most Valuable Company
  • Japan's state pension fund, the world's largest, is seeking information on bitcoin (BTC) as it considers options for portfolio diversification in response to changes in society, the economy and technology.

    The Government Pension Investment Fund (GPIF), which has $1.4 trillion in assets under management, requested data on potential investment diversification tools such as bitcoin and precious metals like gold, which the company considers illiquid and does not currently hold, it said Tuesday.

    For the time being, GPIF invests in domestic bonds, domestic stocks, foreign bonds, foreign stocks, private equity, real estate and infrastructure. While the pension fund is seeking information about bitcoin, there's no guarantee it will choose to invest in the world's largest cryptocurrency once the evaluation is completed.

    The fund is seeking basic information, including academic studies, analytical tools and indexes "including investment examples, investment philosophy, how to incorporate into the portfolio of pension funds," it said.

    Some pension funds, like the Houston Firefighters pension fund and South Korea's National Pension Service, already invest in bitcoin and crypto-related assets. Crypto proponents have long hailed bitcoin as an ideal investment for pension funds, citing a low correlation with traditional assets. The cryptocurrency, however, has tended to move in lockstep with technology stocks over the years.

    The announcement comes weeks after the Japanese cabinet signed a bill allowing venture capital firms and investment funds to hold crypto assets. The bill has yet to be passed by parliament.

    Edited by Sheldon Reback.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Omkar Godbole

    Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.