UK pension fund allocates 3% to Bitcoin

A UK pension fund has made a notable move by adding Bitcoin (CRYPTO:BTC) to its balance sheet, marking a first for the country.

Pensions advisory firm Cartwright announced this development on Monday, revealing that it advised an unnamed client to allocate 3% of its portfolio to Bitcoin.

This recommendation stems from the cryptocurrency's significant long-term gains, which have seen prices increase by nearly 100,000% since 2013, according to data from CoinGecko.

“Trustees of the unnamed scheme choose to make a 3% Bitcoin allocation, reflecting the scheme’s relatively long investment time horizon,” the announcement stated.

Sam Roberts, Cartwright’s director of investment consulting, expressed hope that this strategic move would inspire other institutional investors in the UK to follow suit.

“We are proud to have led this groundbreaking move,” he said, “which we hope will be the start of a trend for institutional investors in the UK to catch up with their increasing number of peers and competitors around the world who are already taking advantage of Bitcoin’s unique attributes.”

The decision aligns with a growing trend of institutional adoption of Bitcoin globally, particularly in the United States.

This shift has accelerated following the approval of spot Bitcoin exchange-traded funds (ETFs) in January, which allow investors to gain exposure to Bitcoin through stock-like shares traded on regulated exchanges.

Cartwright anticipates that institutional adoption of Bitcoin will mirror the gradual acceptance seen when pension schemes began investing in equities during the 1970s. 

While initial adoption may be slow, it is expected that failing to allocate Bitcoin in investment portfolios will soon be viewed as a missed opportunity. 

As institutional interest continues to rise, major financial firms have already acquired over 1 million Bitcoin, valued at approximately $67 billion at current prices.

At the time of reporting, the Bitcoin (BTC) price was $67,919.65.