British pension firm Cartwright has recommended that a pension fund allocate 3% of its assets directly into Bitcoin. No ETF, or any other kind of paper Bitcoin, but the real asset.
A historic allocation
Cartwright’s decision to invest directly in Bitcoin—rather than through an ETF—is important.
This allocation is thirty times higher than what the Wisconsin Pension Fund has invested and represents the largest allocation of any sovereign fund globally, as pointed out by Bitcoin advocate Daniel Batten.
Glenn Cameron, Cartwright’s head of digital assets, explained that this move comes after extensive discussions with the pension scheme’s trustees, where they carefully considered environmental, social, and governance factors, as well as the investment’s security and potential returns.
Security first
The firm is taking security seriously with this investment. The Bitcoin will be held using direct custody, with the private key split among five independent institutions.
This approach reflects an institutional-grade security strategy designed to protect assets while allowing for potential growth.
Sam Roberts, Cartwright’s director of investment consulting, revealed that investors are increasingly seeking innovative ways to future-proof their pension schemes against economic uncertainties.
He described this Bitcoin allocation as a strategic move that not only diversifies their portfolio but also taps into an asset class known for its unique risk-return profile.
Roberts hopes this investment will inspire other institutional investors in the UK to follow suit.
Meanwhile, Steve Robinson, head of investment implementation at Cartwright, noted that their custodial solution allows for quick profit-taking.
This means risk-averse pension schemes can benefit from Bitcoin’s growth potential while managing volatility within a secure framework.
The U.S. is watching, and maybe the whole world is watching
There’s growing interest in Bitcoin investments among U.S. pension funds as well. In late October, Florida’s chief financial officer Jimmy Patronis urged the agency managing state retirement funds to consider including Bitcoin in its portfolio.
He formally requested an evaluation of how feasible it would be to integrate Bitcoin investments into Florida’s public funds.
Just this past May, the State of Wisconsin Investment Board revealed it had invested $164 million in spot Bitcoin ETFs, and they’ve been increasing those holdings since then.
Similarly, the State of Michigan Retirement System also disclosed its BTC ETF investments back in July.
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