New Zealand pension fund invests 5% of assets in Bitcoin

by in Cryptocurrency News

New Zealand

NZ Funds Management's voluntary retirement growth fund in New Zealand has invested 5% of its $ 350 million in BTC.

In October 2020, the company amended the investment declarations of the funds to invest in cryptocurrencies. Chief investment strategist James Grigor does not exclude the possibility that bitcoin will appear in a larger number of products offered by NZ Funds Management.

“If you are interested in gold, you cannot ignore Bitcoin. Our KiwiSaver is made up of stocks and bonds, but other possibilities are emerging. We purchased it in October when it was $ 10,000, now the price is about $ 55,000, ”explained the top manager. In the rise in the price of bitcoin, Grigor saw the legalization of the first cryptocurrency. He referred to the recent decision by investment bank Morgan Stanley to open up Bitcoin funds to clients.

Competitors of NZ Funds Management questioned the advisability of adding the first cryptocurrency to clients' pension plans. They mentioned high volatility and lack of real application.

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“Bitcoin in KiwiSaver is tantamount to gambling, not investing. I'm surprised they see it as a legitimate asset class, ”one of them said. NZ Funds is counting on the continued growth of the first cryptocurrency. The company expressed its readiness to move to the "next asset class" if they find the prerequisites for the completion of this impulse.

Recall that in New Zealand, back in 2017, cryptocurrencies were equated to securities.

In 2019, this country allowed the payment of salaries in bitcoin.

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In the US, in 2020, retirement plans with investments in the first cryptocurrency were offered by DAiM, as well as Bitwage with Gemini.