Institutional investors see Bitcoin as more attractive as more people find ways to be exposed to the digital asset. Last year, large-scale investors dominated the market, with big names buying an impressive amount of Bitcoin and making it part of their balance sheets. It seems that the adoption would continue to spread in 2021 as more firms globally have acquired millions in Bitcoin as part of their assets.
KiwiSaver is the next institutional buyer, taking the digital asset industry by storm as reports show that the saving scheme created has been making plans to buy Bitcoin since 2020. This is not a surprise as many big names have allocations for Bitcoin and other cryptocurrencies as the world are looking friendlier to digital assets.
KiwiSaver has 5% of asset in digital asset
New Zealand Wealth Funds Management created a saving scheme called KiwiSaver Growth Strategy, worth around $350 million. This a retirement plan for the citizens and news reports show that the retirement has acquired 5% of its allocation as Bitcoin. This shows that many investors will still enter the industry and make attractive investment plans as digital assets have become the new gold.
As the firm’s digital asset, Bitcoin has paved the way for other cryptocurrencies, ensuring that the crypto industry grows to an impeccable peak. For some years, people have been calling Bitcoin digital gold, and some have even compared it to the yellow metal.
Gold and Bitcoin have some similarities, which is why the retirement plan’s choice in storing Bitcoin is one of its assets. One of the executives at the fund management, James Grigor, drew out these similarities and made it known that it’s why they had bought Bitcoin. He explained that if people can invest in gold, they should not dislike Bitcoin due to their similarities.
The executive explained this to a local, new agency and that Bitcoin will become a product in the saving scheme over the next five years. The entrepreneur explained that his firm first got its Bitcoin exposure last year when it was around $10,000.
James Grigor speaks on KiwiSaver’s value growth
The wealth fund management had to amend some certain parts in its document to accommodate the new cryptocurrency investment in its treasury. Bitcoin has had a very good year so far, as the coin had reached $61,000 as its highest point.
This means that Grigor’s firm has gained immensely through the investment it started around last year October. Still, even as Bitcoin’s price has dropped from the attractive peak. He explained that the pension fund has profited from the digital asset exposure as Bitcoin is still very valuable.
The entrepreneur explained that the retirement plan has mostly traditional assets as its investment plan. But with other investment opportunities coming, this outlook might significantly change. He explained that the Bitcoin exposure would give people the best retirement they can get as it would likely keep growing with time. Pension funds are warming up to digital asset investments, showing that the asset is going mainstream.