New Zealand Retirement Plan Dedicated 5% of Its Overall Fund to Bitcoin

By Katelyn James | April 6, 2021

KiwiSaver Growth Strategy – a retirement plan operated by New Zealand  Wealth Funds Management that is worth $350 million – is reportedly going to preserve 5% of its overall funds for Bitcoin

Specifically, the initiative – which is a sign showing the steady flow of institutional investors jumping into the crypto asset sphere – was reportedly driven primarily by Bitcoin’s similar feature to gold, as revealed by James Grigor, the chief investment officer at New Zealand Funds Management.

Per Grigor, BTC will reportedly be made available more in KiwiSaver offerings throughout the next half decades, since “If you are happy to invest in gold, you can’t really discount bitcoin”. 

Grigor offered explanations, claiming that the company finalized the acquisition of Bitcoin for the first time in October last year, at the price value of $10,000. To carry out the trade, it is mandatory for New Zealand Fund Management to make adjustments to its offer papers, to enable crypto investments. 

Grigor further claimed that KiwiSaver is “majority built up through traditional asset classes”, but “other opportunities present themselves”. When speaking of Bitcoin, it’s an asset class that could offer individuals the top-of-the-line retirement, via its aggressive compounding.

While hedge funds and family offices are reportedly increasingly showing a pro-attitude towards Bitcoin, pension funds are probably the one with the slowest pace to adopt the crypto coin. The development of institutional onramps could boost the speed, adoption-wise. 

Grayscale reportedly revealed that pension funds are eyeing to include crypto assets in the US. 

“The sizes of allocations they are making are growing rapidly as well”. Michael Sonnenshein – Head of Grayscale – reportedly remarked.

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