Cartwright Advises £59M in Bitcoin for UK Pension
For the first time ever, a UK pension fund has decided to invest in Bitcoin
A company called Cartwright , which specializes in helping pension plans make smart financial choices, helped make this big decision.
In October, an unnamed pension fund chose to put 3% of its money into Bitcoin. This move is seen as “ground-breaking”. It could set a trend for other pension funds in the UK and beyond.
Why Bitcoin for a Pension?
Usually, pension funds invest in things like stocks, bonds, and property. But this fund is thinking outside the box by adding Bitcoin to the mix. According to Sam Roberts , the director of investment consulting at Cartwright, Bitcoin is a “forward-thinking” choice by the pension’s trustees. Roberts explained that while Bitcoin can be risky, it also has great potential for big returns.
He said Cartwright’s approach “limits the downside” while letting the pension benefit from the possible upside of Bitcoin’s growth. In other words, they’re making sure they don’t “put all their eggs in one basket,” while still taking advantage of Bitcoin’s unique strengths.
Even better, the UK Pension Fund who just did a 3% AUM allocation to Bitcoin appears to have opted for self-custody, not ETF exposure @OnrampBitcoin ‘s work seems to have been part of what helped Cartwright onboard the first UK Pension fund without having to go through an ETF https://t.co/EdLaoyJAqn
— Daniel Batten (@DSBatten) November 4, 2024
One reason this fund can handle the ups and downs of Bitcoin is because they’re in it for the long haul. Pension funds are designed to grow money over a long period, so they can afford to take a few risks. This pension fund’s trustees have a “relatively long investment time horizon,” meaning they don’t need the money right away and can wait for their Bitcoin investment to pay off over time.
Leading the Pack
Sam Roberts hopes that this decision will “turn heads” and encourage other institutional investors, like pension funds, to follow their lead. He pointed out that many big investors worldwide are already investing in Bitcoin and other cryptocurrencies. By joining the trend, this UK pension fund is making sure it’s not left behind.
The pensions are here. Samuel Roberts & Glenn Cameron, pension investment specialists at Cartwright, discuss how their learnings during the GFC in ‘08 eventually led them to appreciate bitcoin, as they recognized the inherent flaws of the incumbent system.
Full episode of The… pic.twitter.com/4xYuSC05jl
— Michael Tanguma (@MTanguma) February 12, 2024
This new Bitcoin investment shows that the trustees of this pension fund are not afraid to take a leap of faith. They’re putting trust in the idea that Bitcoin’s value will keep growing, and they want to be part of that growth. Just as “the early bird gets the worm,” this UK pension fund is getting in early, hoping that Bitcoin’s value will go up over time.
Disclaimer
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