I noticed these headlines in my feed recently, pertaining to the news of an 'un-named UK pension fund having invested 3% of its assets in Bitcoin...
Irresponsible...?
Most of the financial news articles have a negative view of this move, with various commentators regarding the move as...
- 'gambling with retirees' futures
- 'focussing on the short term'
- 'investing in something which has no intrinsic value'
- 'taking punts on basket case asset classes'
In fairness the article above, from Sky News, does go on to look at the positives but it leads with the negatives, which sets the overall bias.
Or ahead of the curve....
I'm not sure where I got the figure of 5%, as in invest no more than 5% of your assets into risky ventures.
This is precisely what this one pensions company seems to be doing, only more cautiously which seems reasonable given that it's investing other people's money and this approach is defo not in line with public opinion.
So you can't blame them for this extra cautious approach as there is a risk of alienating the majority of their investors.
To get the positive spin on it, you need to look at the advisors to the un-named pensions company.
Their main point about the 3% investing is that there is a chance that BTC can outperform compared to other asset classes.
And there are unspecified mechanisms in place for the company to take profits at strategic moments.
Presumably this means they have already booked some with the 50% increase in value since they bought back in October!
I mean it's maybe sheer luck with the timing, but they've done pretty well...
Final thoughts...
I think we are going to see more and more of this sort of thing, which would be tasty, if just 1% of pension funds could be allocated to BTC that would mean £100 billion being shifted into crypto, which isn't going to hurt the price!