Japan’s $1.4 Trillion Government Pension Fund Requests Information On Bitcoin As It Mulls Diversification

Updated: 20 March 2024

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Japan’s Government Pension Investment Fund (GPIF), the world’s biggest pension fund with assets of $1.4 trillion, is exploring the feasibility of adding Bitcoin to its portfolio.

The GPIF is looking to build “basic knowledge” around ”illiquid assets” including farm land, gold, Bitcoin and forests, it said on Mar. 19.

https://twitter.com/gpiftweets/status/1769892796104614261

This comes just weeks after the Japanese cabinet signed a bill allowing venture capital firms and investment funds to expose their portfolios directly to BTC. Parliament has yet to pass the bill.

GPIF Considering How Bitcoin Could Be Incorporated Into Its Portfolio

The GPIF requested information via any academic studies, indexes and analytical tools. The fund will also look into the various investment philosophies implemented across the globe to determine how these assets could be incorporated into the pension fund’s portfolio. It set a deadline for such information to be submitted by Apr. 19.

A Potential Seismic Shift

Handling the pensions of more than 67 million Japanese citizens, the GPIF’s interest in BTC signals yet another step toward broader mainstream adoption of the king of cryptos.

Until now, the giant pension fund has held 97% of its portfolio in more traditional assets, including domestic stocks and bonds, as well as private equity, real estate, infrastructure, foreign stocks and foreign bonds.

Bitcoin is the most high-profile asset being researched. Despite its volatility and the high levels of associated risk, more big investment funds are starting to view BTC as a viable hedge against inflation, similar to gold.

This is due to the crypto’s low correlation with the traditional financial market. Pension funds such as the Houston Firefighters pension fund and South Korea’s National Pension Service have already bought into the leading crypto.