Bitcoin is gaining adoption from several institutional investors and corporate entities. Over the past year, institutional investors have pumped billions of dollars into the Bitcoin market, and more are doing so.
KiwiSaver Growth Strategy allocates 5% of funds to Bitcoin
KiwiSaver Growth Strategy has allocated 5% of its funds to Bitcoin investment. The company is a $350 million retirement plan operated by New Zealand Wealth Funds Management. The rise of the leading cryptocurrency has encouraged the retirement fund manager to allocate some of its funds to Bitcoin.
James Grigor, the chief investment officer at New Zealand Funds Management, told Stuff that Bitcoin’s similarities to Gold convinced the firm to invest in the leading cryptocurrency. “If you are happy to invest in gold, you can’t really discount bitcoin,” he added.
Grigor added that the firm would allocate more of its resources to Bitcoin over the next five years. KiwiSaver Growth Strategy first bought bitcoins in October 2020 when the leading cryptocurrency was trading at $10,000. The firm had to change its offer documents to allow for cryptocurrency investments before executing the trade.
Since buying bitcoins, the leading cryptocurrency’s price has surged by more than 500%, making it one of the best-performing assets over the past six months. Grigor explained that although KiwiSaver is mostly comprised of traditional asset classes, they are now open to other investment opportunities available in the market. He believes that Bitcoin is an asset class that could give people the best retirement they deserve via its aggressive compounding.
Bitcoin slowly going mainstream
Bitcoin is winning the admiration of numerous institutional investors globally. An increasing number of corporate companies are allocating a certain percentage of their treasury to Bitcoin as they believe it is a hedge against inflation and an excellent store of value.
Bitcoin’s price would likely increase over the coming months as more companies allocate funds to invest in the asset.