Prepare for teachers’ retirement with Bitcoin?
Is it a good idea to prepare for retirement with Bitcoin? One of South Korea’s largest pension funds seems to be preparing for it. The Korean Teachers’ Credit Union (KTCU) with $ 40.2 billion in assets under management (AUM) reportedly intends to invest in a Bitcoin (BTC) exchange-traded fund (ETF). However, according to sources cited by the Korea Economic Daily, the amount was not disclosed at the time of publication.
The pension fund will not buy BTC directly from the market, but will be exposed to it through an ETF. A representative of the Korean Teachers’ Credit Union was quoted as saying:
“As there are well-designed cryptocurrency-related ETF products by asset managers such as Korea’s Mirae Asset Global Investments, we plan to invest in a Bitcoin ETF after consulting with domestic asset managers. “
Currently, the pension fund invests around 40% of its funds in alternative assets, 10% in national stocks and 9% in international stocks. It is planned to use the allocation intended for international equities to invest in a Bitcoin ETF.
In New Zealand, the KiwiSaver pension fund had invested $ 60 million in Bitcoin, providing exposure to its 3 million subscribers. KiwiSaver is a voluntary savings scheme for New Zealand workers, into which they can contribute up to 10% of their salary.
As another example, the Fairfax County Police Retirement Fund in Virginia purchased approximately $ 50 million worth of cryptocurrency through Parataxis.
More recently, the Houston Fire Department Pension Fund, which manages around $ 5.5 billion in assets, invested $ 25 million in Bitcoin (BTC) and Ether (ETH).
👉 To read on the same subject: This Australian pension fund is considering investing in cryptocurrencies
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About the author: Florent David
Engaged in the crypto ecosystem since 2017. I am particularly interested in decentralized finance (DeFi), Ethereum 2.0 and non-fungible tokens (NFTs).
All articles by Florent David.