The world’s largest pension fund, GPIF, shared a new long-term investment plan on March 19. It is striking that it is considering, among other things, investing in Bitcoin and precious metals, which it places under the heading “alternative investments”. The entry of the largest pension fund in the world could really mean a huge boost for Bitcoin.

Will this cycle really be Bitcoin’s definitive breakthrough on the world financial stage? It’s slowly starting to look like that.

Focus on innovation, sustainability & risk management

To meet new challenges, GPIF is launching a five-year plan to explore innovative methods for diversifying investments. The emphasis is on sustainability and risk management. In that respect, it is extra funny that Bitcoin is part of this.

If you had said 5 years ago that Bitcoin was a sustainable or risk-averse investment, most traditional investors would have thought you were crazy.

It is not yet certain that GPIF will invest in Bitcoin. The pension fund first wants to conduct research into the digital currency and the market before taking the decision. For that reason, it is now collecting information to compare all alternatives.

Interest in new investment category

GPIF, established by the Japanese government in 2006, focuses primarily on investments in core infrastructure funds. These funds invest in assets that are essential for social and economic activities. The company currently diversifies all its investments across traditional assets such as domestic and foreign stocks and bonds, as well as alternative assets such as infrastructure and real estate.

In the 2022 annual report, GPIF emphasized that diversification is their main investment strategy: “Our primary investment strategy is diversification by asset class, region and time horizon. While market prices may fluctuate in the short term, GPIF will take full advantage of our long-term investment horizon to deliver investment returns in a more stable and efficient manner.”

The total assets managed by GPIF amounted to a whopping 225 trillion yen (about US$1.54 trillion) at the end of December 2023, making it the world’s largest pension fund.

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