$350M New Zealand Retirement Fund, KiwiSaver, Jumps Into Bitcoin With 5% Allocation

  • Local reports confirm a $350 million New Zealand pension fund invests 5% in Bitcoin (BTC).

KiwiSaver Growth Strategy, a multi-million New Zealand-based pension fund, has reportedly invested 55 of its total assets to Bitcoin (BTC). The 350 million dollar pension fund becomes one of the first of its kind to dip its toes into cryptocurrencies, showing the extensive investment trail from institutions.

James Grigor, the chief investment officer at New Zealand Funds Management, stated the similarities between gold and Bitcoin as the main reason to take up the digital asset. In March, Bitcoin joined the shiny metal as a trillion-dollar asset as the price set new all-time highs of $61,000.

“If you are happy to invest in gold, you can’t really discount bitcoin,” Grigor said in an interview with a local financial news outlet, Stuff, adding the company is focusing on new BTC products in the future.

KiwiSaver Growth Strategy is a New Zealand-based savings firm that allows low-income workers to contribute up to 10 percent of their monthly income. The savings firm automatically directs the specified savings from your paycheck even in switching jobs.

The company mainly focuses on traditional financial investments and asset classes. However, as opportunities arise, the firm will take them, he added.

“Our KiwiSaver is majority built up through traditional assets classes, your bonds, and shares, and they will always be the asset classes that compound over time to give people the best retirement they can get.”

Grigor confirmed the firm invested in Q4 2020, buying BTC at an average price of $10,000 per coin, meaning the pension fund is sitting on massive BTC profits. The company’s Bitcoin holdings (assuming 5% of its $350 million) are worth about $100million at current prices.

Earlier this year, Grayscale CEO Michael Sonnenshein stated the demand from institutions, including rare funds such as endowments and pension funds, is rapidly reaching a fever pitch as institutions massively stack up sats. He added the digital asset are becoming more scarce, adding to their hard-coded scarcity.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide