Japan’s Government Pension Investment Fund (GPIF), recognized as the world’s largest pension fund, is reportedly exploring this possibility Bitcoin Bitcoin/USD as a potential resource for diversification. This development comes in the context of a significant rise in the value of the cryptocurrency.
What happened: THE GPIF is conducting research into a number of “illiquid assets,” including bitcoin, to potentially broaden its investment scope, CNBC reported Tuesday. While the fund’s traditional investments include bonds, stocks and real estate, exploration of bitcoin and other unconventional assets such as forests and farmland is ongoing.
GPIF’s interest in bitcoin coincides with the cryptocurrency’s new all-time high, following a year in which its value increased by more than 130%. This surge has been partly attributed to the launch of bitcoin ETFs in the United States, which have attracted significant investment.
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Historically, pension funds have been cautious about entering the volatile cryptocurrency market. However, some funds, such as the South Korean National Pension Service, have started investing in cryptocurrency-related assets, including stocks of CoinBase. Additionally, the Japanese government is considering legislation that would allow investment funds to hold digital assets, potentially opening the door to more institutional investment in cryptocurrencies.
Because matter: The GPIF’s potential move to Bitcoin is a significant indicator of changing attitudes towards the cryptocurrency in institutional investment circles. Recently, Bitcoin suffered a flash crash, dropping to $8,900 on the BitMEX exchange before making a quick recovery. Despite this volatility, the global average price of Bitcoin has remained around $67,400.
Previously, speculation had surfaced that Bitcoin could reach $100,000, bolstered by the approval of Bitcoin ETFs and the strong capital inflows that followed. Furthermore, investors have shown confidence in the value of Bitcoin, with some betting on a value between $100,000 and $150,000.
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