The World’s Largest Pension Fund from Japan Eyes Bitcoin Diversification

The World’s Largest Pension Fund from Japan Eyes Bitcoin Diversification

by March 20, 2024

The Government Pension Investment Fund (GPIF) of Japan, holding the title of the world’s largest pension fund with assets amounting to US$1.5 trillion (227 trillion yen), is broadening its investment strategy to potentially include Bitcoin.

This strategic exploration was highlighted in a recent Bloomberg Japan report, emphasising the fund’s initiative to diversify its robust portfolio further.

With a vast management portfolio of approximately 225 trillion yen as of December 2023, the GPIF’s traditional investment focus has spanned domestic and international equities, bonds, and alternative assets like infrastructure and real estate.

Considering additional assets such as Bitcoin represents an exploratory step towards a broader and more varied investment strategy.

The GPIF’s interest in expanding its portfolio is part of an effort to understand how similar funds globally are incorporating such assets and to gain firsthand knowledge of these investment experiences.

This initiative aligns with the fund’s recent activities to enhance its investment operations and diversify its holdings, including selecting 56 active funds focused on North American, developed countries, and Japanese stocks.

The current exploration of new investment options of the Government Pension Investment Fund of Japan, including Bitcoin, is in the early stages of information gathering. Any decision to widen the fund’s investment spectrum will be based on a detailed analysis and the outcomes of this preliminary research.

Featured image credit: Edited from Freepik