KiwiSaver growth fund, a retirement growth fund with investments worth $350 million has invested 5% of its total assets in Bitcoin. The chief investment officer James Grigor also promised more KiwiSaver schemes with bitcoin exposure in the upcoming 5 years. He said,
“Our KiwiSaver is majority built up through traditional assets classes, your bonds and shares, and they will always be the asset classes that compound over time to give people the best retirement they can get.
But there’s going to be times when it’s not always going to be plain sailing. You may still have a positive view of those asset classes, but other opportunities present themselves,”
New Zealand Wealth Management, a retirement growth fund, now has 5% of its assets in #Bitcoin after their initial hodlings increased by 500%.
— Documenting Bitcoin ???? (@DocumentingBTC) March 25, 2021
Bitcoin’s rising value along with popularity has made it the go-to choice for investors and now even large wealth fund managers. Only yesterday Coingape reported that a Singapore-based $306 billion wealth manager has been buying Bitcoin from miners since 2018. The rising interest of high-value sovereign wealth management funds most of them associated with the government is a clear sign of growing Bitcoin adoption beyond the limited crypto market.
The Chief Investment Officer of KiwiSaver said that they see Bitcoin as a commodity with properties like gold.
“If you are happy to invest in gold, you can’t really discount bitcoin,”
However, many other rival wealth managers believe the decision would not be good for investors as they see BTC as a speculative asset and believe investing in it is more like gambling.
After Fortune 500 Companies, Wealth Fund Managers and Banking Giants Rust to BTC
The likes of MicroStrategy and Tesla were among the early fortune 500 companies to see the potential of Bitcoin in the future of finance. However, as the bull run continues defying most of the previous records more mainstream banking giants such as Morgan Stanley, BNY Mellon, and Goldman Sachs have started to gain exposure in Bitcoin.
Now Wealth Fund Managers have also rushing to add Bitcoin to their investment schemes which is a big deal given, most of these retirement and pension funds only invest in assets with very high chances of better return.