UK Pension Fund Makes Landmark Move, Invests 3% of Portfolio in Bitcoin

Cartwright's investment director calls the decision “bold” and likens Bitcoin adoption to early pension investments in stocks.

A UK pension fund has made history by becoming the first in the country to invest directly in Bitcoin, allocating 3% of its portfolio to the cryptocurrency.

Cartwright, the pension advisory firm, announced on Monday that it had advised the fund on the strategic investment.

The move comes amid growing institutional interest in Bitcoin, following the launch of spot Bitcoin ETFs in the U.S.

The fund’s decision was driven by Bitcoin’s potential as a long-term growth asset, given its nearly 100,000% price increase since 2013.

“This is a bold and strategic move by the fund, and an indication of where the pension industry is heading,” said Sam Roberts, Cartwright’s director of investment consulting.

“Bitcoin’s growth over the last decade speaks for itself, and with the fund having a long-term outlook, this fits perfectly within their goals.”

Roberts likened Bitcoin adoption to the 1970s, when pension funds slowly started buying stocks.

“This feels like a similar moment, where an asset class that seems unconventional today could become a standard holding for funds in the future,” he added.

The fund’s 3% allocation to Bitcoin is 30 times higher than the Wisconsin Pension Fund’s and the largest allocation of any Sovereign Fund in the world.

The UK fund’s move follows a trend in the U.S., where institutions have shown increasing interest in crypto assets since the U.S. Securities and Exchange Commission approved several spot Bitcoin ETFs in January.

These ETFs, offered by BlackRock and Fidelity among others, have enabled institutions to gain Bitcoin exposure without directly holding the cryptocurrency.

In total, these funds have acquired over 1 million Bitcoin, a stake valued at approximately $67 billion at current prices.

The U.S. trend has also spurred institutions worldwide to pay closer attention to digital assets, making the UK fund’s Bitcoin allocation less surprising.

“This move by a major UK pension fund to allocate a portion of its portfolio to Bitcoin is a significant development,” the advisory firm stated.

“We expect it to inspire more UK pension funds to consider digital assets like Bitcoin and others.”

According to Roberts, with regulatory clarity improving, more institutional investors will come to recognize Bitcoin as a valuable portfolio asset.

“This step might spark a broader trend across the institutional industry, signaling a gradual yet impactful change in the UK’s approach to retirement investments,” he said.

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