Japan’s $1.5trn pension fund eyes Bitcoin diversification

Onwubuke Melvin
Onwubuke Melvin

Japan’s Government Pension Investment Fund, which manages more than $1.5 trillion of assets and is the biggest pension fund in the world, announced that it would be looking to diversify a part of its portfolio towards bitcoin.

According to the announcement, as part of its diversification efforts, the GPIF will seek information on illiquid alternative assets such as bitcoin, gold, forests, and farmland. This move indicates that the megafund is constantly looking at alternatives other than stocks and bonds, even if it has not invested in these assets yet.

The GPIF stated it seeks “basic knowledge about the assets targeted for information provision” and wants to understand “how overseas pension funds incorporate them into their portfolios,” according to Bitcoin Magazine.

The GPIF has been actively developing its investment strategies as a major shareholder of Japanese pension funds. It has given a greater diversity of assets in recent years, e.g. real estate, infrastructure and public equity.

The most prominent asset that’s been researched is bitcoin. Despite its volatility and risk, BTC is increasingly seen as a hedge against inflation, as opposed to gold. The GPIF stressed that its announcement did not guarantee future investments, but the impact on Japanese pension funds purchasing Bitcoin would have a very strong impact in the industry.

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