Kiwisaver Growth Strategy Allocates 5% Of Its Assets To Bitcoin

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The New Zealand Wealth Funds Management runs a $350 million retirement plan known as the KiwiSaver Growth Strategy. Reports show Bitcoin as having remarkable similarities to gold, and that factor led the KiwiSaver Growth Strategy to allocate about 5% of its assets to the above cryptocurrency. 

Grigor speaks out about the investment

The chief investment officer at New Zealand Funds Management, James Grigor, is one of the many leaders who have lately noticed the similarity between gold and bitcoin. The official has, in several instances, outlined that anyone enthusiastic about gold investments should feel the same way about bitcoin because of the close similarity between the two. Grigor disclosed their plans over the next five years, outlining that they would focus on featuring BTC in more KiwiSaver products.

In October, the firm took to buying Bitcoin, marking its first time to purchase the crypto in question. Sources indicate Bitcoin going at about $10,000 in terms of valuation at the time. 

At the start of this month, Bitcoin’s price shot up to stand at about $61,000, a case scenario that entitled KiwiSaver a 6x return in only five months. Grigor spoke about KiwiSaver, disclosing the setup as having relied majorly on the traditional asset classes. 

However, the official expressed great optimism into the future, outlining that they hoped to take advantage of the new opportunities that would come their way. The leader considers Bitcoin to be the kind of asset capable of offering investors the most outstanding retirement benefit considering its aggressive compounding. 

The place of pension funds

The family offices and the hedge funds have been somewhat inclined to Bitcoin recently. However, investors need to look at matters from all perspectives. For example, it is easy to tell that the pension funds top the list when focusing on the relatively slow segments in embracing the digital asset class. 

Matters change with time, considering how the pension funds have gradually started embracing digital assets. Sources show the fast growth of the allocations in question, and the world might experience a significant shift soon. 

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