UK-based pension advisory firm Cartwright has announced that it has advised a pension scheme to make a 3% allocation in Bitcoin, marking the first such move in the country.
What Happened: The allocation, valued at approximately $59 million, was made in October after a comprehensive due diligence process aimed at ensuring risk management and strategic fit within the scheme's portfolio.
The unnamed pension scheme's decision to incorporate Bitcoin BTC/USD reflects an effort to diversify its investment strategy and harness Bitcoin’s asymmetric return potential.
According to Cartwright, this allocation aligns with the scheme's long-term investment horizon and aims to balance potential growth with managed risk.
Sam Roberts, Director of Investment Consulting at Cartwright, said, "Trustees are increasingly looking for innovative solutions to future-proof their schemes in the face of economic challenges."
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Steve Robinson, Head of Investment Implementation at Cartwright, emphasized the operational security of the investment, stating that their approach combines a secure custodial solution with a strategy for realizing profits efficiently.
"Our commitment to engaging with emerging innovative technologies means we can ensure that trustees remain at the cutting edge of investment solutions," Robinson added.
Cartwright likened this step to the initial adoption of equities in the 1970s and high-yield bonds in the 1980s, predicting that other UK pension schemes may soon follow suit.
The impact of this pioneering allocation and broader trends in institutional crypto adoption will be explored at Benzinga’s Future of Digital Assets event on Nov. 19.
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