British pension specialist Cartwright has successfully guided the first pension fund in the UK to invest in bitcoin. The unnamed fund decided to allocate 3% of its total assets directly into the cryptocurrency, rather than using a proxy like a spot ETF. This decision came after extensive consultations with the scheme’s trustees, where factors such as ESG, investment case, and security were thoroughly discussed.
What sets this investment apart is not only the fact that the pension fund is investing directly in bitcoin, but also the size of the investment itself. While the State of Wisconsin pension fund in the U.S. made headlines for investing in bitcoin through spot ETFs, the investment only accounted for about 0.1% of the fund’s assets. In contrast, the UK pension fund’s investment represents a significant 3% of its assets.
In addition to this historic investment, Cartwright is also launching a Bitcoin Employee Benefits scheme. This initiative will allow employers to pay bitcoin directly into the wallets of their staff members. Currently, five companies have shown interest in this innovative scheme, demonstrating the growing acceptance and adoption of cryptocurrencies in the mainstream financial sector.
Cartwright’s push for institutional investors to consider allocating assets into bitcoin reflects the increasing trend of traditional financial institutions embracing digital assets. The private key for the pension fund’s bitcoin investment is split between five independent institutions, ensuring security and reliability in the management of the cryptocurrency.
While the exact amount of assets under Cartwright’s management remains undisclosed, the firm, which is based in Hampshire, UK, has garnered attention for its pioneering approach to integrating bitcoin into pension fund investments. With the rise of bitcoin breaking the $64,000 mark and gold prices soaring, the decision to invest in digital assets like bitcoin is becoming increasingly attractive to investors seeking diversification and potential high returns.
As the ETH/BTC ratio hits its lowest point since April 2021 and questions arise about bitcoin’s bullish momentum, the UK pension fund’s groundbreaking investment in bitcoin serves as a testament to the growing significance of cryptocurrencies in the global financial landscape. By offering innovative solutions like the Bitcoin Employee Benefits scheme, Cartwright is leading the way in bridging the gap between traditional finance and the digital currency ecosystem.
