- Japan’s Government Pension Investment Fund, the world’s largest pension fund, is exploring investing in bitcoin as part of a strategy to diversify its $1.4 trillion portfolio.
- The pension fund currently invests in bonds, stocks, private equity, real estate, and infrastructure, but does not hold any cryptocurrencies or precious metals.
- The fund is seeking information on bitcoin, like academic studies and analytical tools, to evaluate digital assets as a potential new portfolio diversification tool, following recent regulatory changes in Japan.
Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund with over $1.4 trillion in assets, is seeking information on potentially investing in bitcoin. This move comes as part of the fund’s broader strategy to diversify its portfolio in response to economic, societal, and technological changes.
GPIF’s Current Portfolio
The GPIF currently invests in domestic and foreign bonds, domestic and foreign stocks, private equity, real estate, and infrastructure. The fund does not currently hold any cryptocurrencies or precious metals like gold, which it considers illiquid assets.
Seeking Information on Bitcoin
While not guaranteeing future investment, the GPIF is requesting basic information on bitcoin, including academic studies, analytical tools, indexes, and investment approaches. This is part of its evaluation of digital assets and precious metals as potential new portfolio diversification tools.
Some Pension Funds Already Hold Crypto
A few pension funds worldwide, like the Houston Firefighters’ fund and South Korea’s National Pension Service, already hold bitcoin and crypto-related assets. Crypto supporters have often proposed bitcoin as an ideal pension fund investment given its low correlation to traditional asset classes, though it has tended to trend alongside tech stocks.
Recent Regulatory Changes in Japan
This exploration of bitcoin investment comes just weeks after Japan’s cabinet signed a bill allowing venture capital firms and investment funds to hold crypto assets. The bill still needs parliamentary approval to become law.
