The New Zealand Pension Fund announced a $ 17.5 million bitcoin (BTC) investment in October

The New Zealand Pension Fund announced a $ 17.5 million bitcoin (BTC) investment in October



It has emerged that a New Zealand fund manager invested $ 17.5 million worth of Bitcoin in October 2020, when BTC was around $ 10,000. According to James Grigor, the company's Chief Investment Officer, KiwiSaver Growth Strategy recently invested 5% of its money in Bitcoin.


While several investors from KiwiSaver are unhappy with the decision, Grigor believes Bitcoin has become a commodity similar to gold and has many similar features, such as working as a store of value against Fiat hyperinflation. The official told New Zealand news agency stuff:


“If you're happy to invest in gold, you don't see a discount for Bitcoin.”


KiwiSaver is a pension scheme from New Zealand Wealth Funds Management. The fund deals mostly in traditional assets, bonds and equities, and has $ 350 million worth of assets under its management.


The fund had to change its documents in October to be able to invest in Bitcoin while trading at $ 10,000. Considering that BTC peaked at just over $ 60,000 on March 13, KiwiSaver's investment was worth six times as much. 


Traditional Investors Remain Sceptical


Despite corporate interest from investment giants such as Goldman Sachs and Morgan Stanley, fund managers at other KiwiSaver programs note that Bitcoin does not have much use and is “very volatile at this stage.” 


Grigor believes Bitcoin presents a new opportunity for investors. According to him, whether the price of the cryptocurrency rises or falls, the fund says it will move to the next potential asset class:


"Our KiwiSaver's majority of traditional asset classes are created through your bonds and shares, and there will always be asset classes that converge over time to give people the best retirement they can get. But there will also be times when it's not always going to be straight. You can still have a positive view of these asset classes, but other opportunities are showing themselves.”


This information led to the fund investing in Bitcoin in October, when the corporate bull run for BTC was just showing itself:


“We bought it in October for us $ 10,000 (NZ $ 14,360). It was $ 62,000 over the weekend and is back to $ 55,000 today.”

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