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South Korean pension fund to invest in Bitcoin


South Korea’s public pension fund, the Korean Teachers’ Credit Union (KTCU), which manages 47 trillion won ($40 billion) in assets, plans to invest in Bitcoin (BTC) via a crypto exchange-traded fund (ETF). Korea Economic Daily reported this.

Thus, according to the publication, we are not talking about a direct purchase. The union will allegedly gain access to the asset through investment products such as Bitcoin ETFs.

Media reports suggest that investing in a pure Bitcoin ETF or Bitcoin-related ETFs will begin in the first half of 2022. If the initiative is implemented, KTCU will become the first such organization in South Korea to invest in Bitcoin.

The Mirae Asset Global Investments

According to the report, KTCU is considering investing in a number of Bitcoin ETFs. Including those offered by Mirae Asset Global Investments, a South Korean asset management firm. In April 2021, the company’s Canadian subsidiary Horizons ETFs released two ETFs that track the value of Bitcoin futures.

“As there are certain well-made cryptocurrency-linked ETF products by asset managers; such as Korea’s Mirae Asset Global Investments,” a KTCU executive reportedly remarked. “We plan to invest in the ETF products after consulting with domestic asset managers.”

The official also highlighted Mirae Asset’s subsidiary, Global X ETFs, which applied for a Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC) in July.

Pension funds become more interested in having crypto

Earlier, the American pension fund New Jersey’s Common Pension Fund D. With assets of $30 billion sent $7 million to buy shares of mining companies. At the end of the second quarter, the state-managed fund had positions in Riot Blockchain ($3.66 million); and Marathon Digital Holdings ($3.39 million).

The announcement comes as global pension funds become more interested in having exposure to cryptocurrencies such as Bitcoin and key companies in the space. Previously in October, the Texas-based Houston Firefighters Relief and Retirement Fund added digital gold and Ethereum (ETH) to the defined benefit program portfolio.

Recall that in the same month, Australia’s fifth-largest pension fund; Queensland Investment Corporation (QIC) did not rule out the possibility of “small investments” in cryptocurrencies. The head of the QIC currency department, Stuart Simmons, noted the need for greater protection against “non-quantifiable risks”. Such as fraud, theft and market manipulation.

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