The British pension firm Cartwright has proposed that a pension fund allocate 3% of its assets to Bitcoin, opting for direct investment rather than through an exchange-traded fund.
According to a report from industry publication Corporate Advisor on November 4, the company is now encouraging institutional investors to incorporate Bitcoin into their portfolios.
This allocation is thirty times greater than that of the Wisconsin Pension Fund, making it the largest allocation by any Sovereign Fund globally to date, noted Bitcoin supporter Daniel Batten.
BREAKING: Cartwright, a multi-billion dollar UK pension fund, just announced a 3% Bitcoin allocation
As a percentage, this is 30x higher than the Wisconsin Pension fund’s allocation, and the largest allocation of any Sovereign Fund in the world so farhttps://t.co/84uz38dMgm
— Daniel Batten (@DSBatten) November 4, 2024
Bitcoin in UK Pension Funds
The pension specialist emphasized that the inclusion of Bitcoin in pension plans is “a bold step that reflects the forward-thinking nature of the trustees involved.”
The decision to allocate 3% of its assets under management to Bitcoin followed extensive discussions among the scheme’s trustees, addressing topics such as ESG, investment rationale, and security, according to Glenn Cameron, Cartwright’s head of digital assets.
This investment involves direct custody of Bitcoin, with the private key divided among five independent entities, showcasing an institutional-grade security framework.
Sam Roberts, Cartwright’s director of investment consulting, mentioned that both investors and trustees are increasingly seeking innovative solutions to “future-proof their schemes amidst economic challenges” and added:
“This Bitcoin allocation is a strategic move that not only provides diversification but also engages with an asset class that presents a unique asymmetric risk-return profile.”
He expressed hope that this investment “will herald a trend among institutional investors in the UK to catch up.”
In addition, Steve Robinson, head of investment implementation at Cartwright, stated that by utilizing a custodial solution with a strategy to realize profits swiftly, “we’ve created an opportunity for risk-averse pension schemes and other institutional investors to leverage Bitcoin’s growth potential while managing volatility in a secure strategic manner.”
Bitcoin Adoption in US Pensions
In late October, Florida Chief Financial Officer Jimmy Patronis expressed a desire for the agency overseeing the state’s retirement funds to explore Bitcoin investment options.
Patronis formally requested Chris Spencer, the Executive Director of Florida’s State Board of Administration, to evaluate the feasibility of incorporating Bitcoin investments into the state’s public funds.
In May, the State of Wisconsin Investment Board announced a $164 million investment in spot Bitcoin exchange-traded funds, subsequently increasing this allocation in August. The State of Michigan Retirement System also revealed BTC ETF investments in July.
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