Crypto pension funds soar amid 130% rise in Bitcoin prices

Bitcoin (BTC)’s recent surge past $100,000, reaching an all-time high of $108,000, has drawn conservative investors into the cryptocurrency space. Pension funds have begun investing in cryptocurrencies, driven by their promising returns. Hence, the recent rise in the cryptocurrency market and rising Bitcoin prices have seen the growth of crypto retirement funds.

In a recent report, Financial Times It revealed that most crypto pension funds have begun to show interest in US-regulated ETFs, which allow indirect investment in cryptocurrencies such as Bitcoin and Ethereum. Many believe that growing demand for cryptocurrencies among typically conservative charts would lead to more institutional adoption, especially under the administration of incoming President Donald Trump.

Crypto retirement funds and ETF investments

The retirement systems of Wisconsin and Michigan are reportedly among the largest investors in US crypto-focused funds. In addition, pension funds in the UK and Australia have also begun investing in Bitcoin recently, albeit in small amounts.

It is worth noting that the Wisconsin Investment Board owns about $155 million in shares BlackRock Bitcoin ETF. Michigan is the sixth-largest shareholder in Grayscale’s Ethereum ETF, holding a $12.9 million stake. It also figures prominently in Cathie Wood’s ARK 21Shares Bitcoin ETF.

The pension industry is booming with cryptocurrency investments

Sam Roberts, director of investment advisory at Cartwright, said that despite the “slow movement,” the retirement industry is poised for “very interesting” growth due to its impact on cryptocurrencies. As Roberts revealed, more than 50 individuals have reached out to the retirement consulting firm looking for a pivot to cryptocurrency-based retirement investments.

Although crypto retirement funds have begun to expand after major setbacks in the digital asset market, many believe that the storm has passed. Experts see the growing acceptance of cryptocurrencies as the driving force for the growth of the global cryptocurrency market. “There’s no doubt that the headwinds are fading… I think you’ll see more of that institutional adoption,” said Alex Pollack, head of UK and Israel at 21Shares.

However, the crypto pension funds faced strong objections from Daniel Peters, a partner in Aon’s global investment practice. Instead, he recommended hedge funds as a more suitable option for retirement funds seeking exposure to alternative assets. He mentioned,

We do not believe that pension funds should be allocated to cryptocurrencies – they are highly volatile and we do not see any solid valuation framework that can justify the value. We fundamentally do not believe this should be part of a superannuation fund strategy for these reasons unless allocated through a specialist manager.

Bitcoin rises after Trump’s inauguration

Cryptocurrency experts and analysts are looking forward to Bitcoin rising next Trump’s inauguration on January 20. There are expectations that the market will witness high volatility before and after the opening ceremony. While many maintain that crypto pension funds’ digital asset investments have been driven by the Bitcoin ETF, the industry is waiting to see how the market movement could further impact conservative investors.

BTC price jumped 3% in the last 24 hours, and the price is currently trading at $99,178. The 24-hour low and high are $96,505 and $100,781 respectively. Moreover, trading volume increased by 11% in the last 24 hours, indicating high interest among traders.