The Government Pension Investment Fund (GPIF) of Japan, the world’s largest pension fund, is reportedly exploring Bitcoin as a potential asset for diversification. This move comes at a time when the cryptocurrency market is experiencing a significant rally in value.
According to CNBC, the GPIF is conducting research on various “illiquidity assets,” including bitcoin, to expand its investment scope. While the fund traditionally invests in bonds, stocks, and real estate, it is now exploring unconventional assets such as bitcoin, forests, and farmland.
The interest of GPIF in bitcoin aligns with the cryptocurrency’s recent surge to a new all-time high. Over the past year, bitcoin’s value has increased by over 130%, partly due to the launch of bitcoin ETFs in the U.S., which have attracted substantial investments.
Historically, pension funds have been cautious about entering the volatile crypto market. However, some funds, like South Korea’s National Pension Service, have started investing in crypto-related assets, including shares of Coinbase. Additionally, Japan’s government is considering legislation that would allow investment funds to hold digital assets, potentially paving the way for more institutional investment in cryptocurrencies.
The GPIF’s potential move into bitcoin indicates a shift in attitudes towards cryptocurrency in institutional investment circles. Despite recent volatility, with bitcoin experiencing a flash crash and rebounding swiftly, the global average price of bitcoin remains around $67,400.
Speculations have arisen that bitcoin could reach $100,000, fueled by the approval of bitcoin ETFs and strong capital inflows. Investors have also shown confidence in bitcoin’s value, with some betting on it reaching between $100,000 and $150,000.
The exploration of bitcoin by the GPIF highlights the growing acceptance of cryptocurrencies as a legitimate asset class. As institutional investors like pension funds begin to consider bitcoin as part of their investment portfolios, the cryptocurrency market may see increased stability and growth in the future.
