New Zealand Wealth Management Fund Invests 5% of its Assets in Bitcoin

By Prashant Jha
Published March 26, 2021 Updated March 26, 2021
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New Zealand Wealth Management Fund Invests 5% of its Assets in Bitcoin

By Prashant Jha
Published March 26, 2021 Updated March 26, 2021

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.

he added,

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,”

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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.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
1005 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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