British pension firm Cartwright has advised the allocation of 3% BTC to an unnamed pension fund, which has invested directly in the asset rather than via an exchange-traded fund.
The company is now urging institutional investors to allocate assets into Bitcoin, according to a Nov. 4 report from industry magazine Corporate Advisor.
As a percentage, this is thirty times higher than the Wisconsin Pension Fund’s allocation and the largest allocation of any Sovereign Fund in the world so far, observed Bitcoin advocate 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
BTC in UK Pension Funds
The pension specialist stressed that integrating Bitcoin into pension schemes is “a bold step that reflects the forward-thinking nature of the trustees involved.”
The allocated 3% of its assets under management into Bitcoin following “lengthy consultations with the scheme’s trustees, where ESG, investment case, and security were all addressed at length,” said Glenn Cameron, head of digital assets at Cartwright.
The investment uses direct Bitcoin custody, has a private key split between five independent institutions, and demonstrates an institutional-grade security approach.
Cartwright director of investment consulting Sam Roberts said that investors and trustees are increasingly looking for innovative solutions to “future-proof their schemes in the face of economic challenges” before adding:
“This Bitcoin allocation is a strategic move that not only offers diversification but also taps into an asset class with a unique asymmetric risk-return profile.”
He noted that the firm hopes the investment “will be the start of a trend for institutional investors in the UK to catch up.”
Meanwhile, Cartwright’s head of investment implementation, Steve Robinson, added that by using a custodial solution with a mechanism to trim profits quickly, “we’ve opened the door for risk-averse pension schemes and other institutional investors to benefit from Bitcoin’s potential growth whilst managing volatility within a secure strategic framework.”
Bitcoin Pension Push in the US
In late October, Florida chief financial officer Jimmy Patronis said he wanted the agency that manages the state’s retirement funds to consider including in Bitcoin.
Patronis sent a formal request to Chris Spencer, the Executive Director of Florida’s State Board of Administration, asking for an assessment of the feasibility of integrating Bitcoin investments into the state’s public funds.
In May, the State of Wisconsin Investment Board reported it had invested $164 million in spot Bitcoin exchange-traded funds, increasing those holdings in August. In July, the State of Michigan Retirement System also disclosed BTC ETF investments.
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