Japanese Pension Fund Manager Kepincut Bitcoin

The pension fund management agency in Japan plans to diversify funds to bitcoin. (Photo; Doc. CoinMama)

JAKARTA - The Japanese Government Pension Investment Fund (GPIF), which is the largest pension fund in the world with assets of around US$1.4 trillion (around Rp22,027 quadrillion), recently announced plans to diversify its investment portfolio.

The GPIF, which has been known for investing in stocks and bonds, is now considering non-liquid assets such as Bitcoin and gold as part of an adaptation strategy towards economic and social change.

As reported by CryptoNews, on Tuesday, the GPIF stated that it is seeking information regarding potential diversification into assets such as Bitcoin, gold, forest, and agriculture. This move reflects the GPIF's goal of strengthening its core portfolio with a focus on long-term sustainability and anticipating a major shift in the economy and society.

Although GPIFs are actively seeking information, there is no certainty whether they will expand their investment into these new assets. The GPIF emphasizes that they will not compensate for the information provided, showing a cautious and measurable approach to their exploration.

GPIF investment currently includes both domestic and international markets, with integration of environmental, social and governance considerations (ESG) to increase long-term returns. GPIF's main goal is to generate stable investment returns to support the pension benefits of Japanese society, while minimizing the risk to the pension system.

The interest in pension funds on crypto is not a new phenomenon. For example, South Korea's National Pension Service has invested around 26 billion won ($20 million) in Coinbase shares last year. In the United States, Fairfax County Retirement Systems has also announced plans to explore the crypto lending market.

Recent surveys from the CFA Institute show that most of the state and government pension plan sponsors are involved in crypto investments, with 62% of the company's pension benefits plan allocating funds for crypto-related investments. This signifies a growing trend in which pension funds begin to view crypto as a viable investment asset for diversification and long-term potential returns.

With this GPIF move, Japan shows its seriousness in adapting financial innovation and blockchain technology, while maintaining stability and sustainability of its national economy.