British Pension Fund Manager Cartwright Advises Unnamed Fund to Allocate 3% of Assets Into Bitcoin (BTC)

According to a report from Corporate Adviser, the fund has allocated a small percentage of its £50 million (around $65 million) worth of asset into Bitcoin

British pension fund manager Cartwright has advised an unnamed fund to allocate 3% of its assets into Bitcoin (BTC), marking the first time a UK pension fund has allocated to the flagship cryptocurrency.

The fund has allocated a small percentage of its £50 million (around $65 million) worth of assets into BTC, a move that aligns with the pension scheme’s long-term investment strategy and is supported by “robust risk management at both asset and scheme levels,” according to a report from Corporate Adviser.

Cartwright’s director of investment consulting, Sam Roberts, said that trustees are “increasingly looking for innovative solutions to future-proof their schemes in the face of economic challenges.” He added that the BTC allocation not only offers diversification but also “taps into an asset class with a unique asymmetric risk-return profile.”

The pension fund reportedly invested in Bitcoin directly instead of through a proxy offering it exposure, such as a spot Bitcoin exchange-traded fund (ETF) or shares of MicroStrategy, the largest corporate holder of BTC.

The fund's investment was made at a price of around $65,800, and the private keys for the cryptocurrency wallet were split between five different institutions.

Glenn Cameron, head of digital assets at Cartwright, said that the investment's potential upside is significant, adding that “If you look at the correlations of bitcoin with 14 other asset classes, the 60-day correlation centres around zero. Investors need certain investment horizons, and it needs to fit within their risk appetite.”

While this marks the first time a British pension fund has invested in BTC, several US pension funds have allocated資金を割り当てた to the cryptocurrency in recent months.

Earlier this year, the State of Wisconsin Investment Board invested over $160 million in BTC through ETFs, adding exposure to the cryptocurrency for the Wisconsin State Pension Fund.

Similarly, the Michigan State Retirement System invested $6.6 million in spot Bitcoin ETFs over the summer, in a move that aligned with its diversification strategy. However, data has shown that retail investors are driving the demand for spot Bitcoin ETFs.

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