Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund, is exploring Bitcoin as a potential diversification tool as part of its new long-term investment policies.
The GPIF announced the development of new investment policies on March 19 in response to significant economic and societal changes, as well as rapid technological advancements. These policies aim to address challenges and explore innovative methods for diversifying investments, focusing on sustainability and risk management.
As part of a five-year research plan, the GPIF is seeking data on various potential diversification tools, including assets it considers “illiquid” and currently does not hold. This includes cryptocurrencies like Bitcoin, precious metals such as gold, and other assets.
The announcement clarifies that the request for information does not guarantee the GPIF’s expansion into new assets like Bitcoin. Instead, the firm will assess whether to conduct further research based on the data collected.
Diversification is highlighted as the primary investment strategy for the GPIF, aiming for stability and efficiency over the long term. The fund invests in traditional assets like stocks and bonds, as well as alternative assets such as infrastructure and real estate.
As of December 2023, the GPIF manages assets totaling 225 trillion Japanese yen ($1.54 trillion), solidifying its position as the world’s largest pension fund.
While the GPIF is in the initial stages of considering Bitcoin, other global pension funds have already incorporated Bitcoin-related assets into their portfolios. For example, South Korea’s National Pension Service purchased over 280,000 shares of the U.S.-based Coinbase in November 2023.
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