Home Cryptocurrency South Korean pension fund to invest in Bitcoin ETF: Report

South Korean pension fund to invest in Bitcoin ETF: Report

by Gordon James

The South Korean pension fund, the world’s third largest with assets of $1.6 trillion, will invest in Bitcoin futures to avoid “idiot” investors who are not well-informed about cryptocurrencies. The Seoul National Pension Service is looking to invest around 10 billion won ($8 million) into a group that seeks listing the first cryptocurrency ETF on an U.S.-based exchange by September next year.,

The South Korean pension fund has decided to invest in the Bitcoin ETF. The fund will be investing $500 million in the cryptocurrency and is expected to make an announcement soon. Read more in detail here: invest in bitcoin now.

 

The Korean Teachers’ Credit Union (KTCU), a public pension fund in South Korea, is apparently considering investing in Bitcoin (BTC) via a crypto exchange-traded fund (ETF).

According to local news media The Korea Economic Daily, KTCU, one of South Korea’s major institutional investors, is contemplating investing in a pure Bitcoin ETF or Bitcoin-linked ETFs in the first half of 2022.

According to the article, KTCU is contemplating investing in a number of Bitcoin ETFs, including those offered by Mirae Asset Global Investments, a South Korean asset management business. In April 2021, the company’s Canadian affiliate Horizons ETFs released two ETFs that follow the value of Bitcoin futures.

“Because there are certain well-made cryptocurrency-linked ETF products by asset managers like Korea’s Mirae Asset Global Investments,” a KTCU official allegedly remarked, “we aim to invest in the ETF products after consulting with local asset managers.”

The official also highlighted Mirae Asset’s subsidiary, Global X ETFs, which applied for a Bitcoin ETF with the US Securities and Exchange Commission in July.

With $40.2 billion in assets under administration, KTCU is the second-largest institutional investor in South Korea, according to the research. Alternative assets account for 40% of the pension fund’s investments, with local and overseas equities accounting for 10% and 9%, respectively. The magnitude and other parameters of KTCU’s possible Bitcoin ETF investment have yet to be determined.

Why are we doing this now? The US Securities and Exchange Commission took eight years to approve a Bitcoin ETF.

The announcement comes as global pension funds become more interested in having exposure to cryptocurrencies such as Bitcoin and key firms in the space. According to reports, the Houston Firefighters’ Relief and Retirement Fund acquired $25 million in Bitcoin and Ether last week (ETH). The Ontario Teachers’ Pension Plan Board of Canada took part in a $420 million fundraising round for FTX, a major cryptocurrency exchange, the company stated Oct. 21.

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