South Korean Public Pension Fund Manager Intends To Invest In Bitcoin

The South Korean Public Pension Fund wants to invest in bitcoin. (photo: doc. unsplash)

JAKARTA - South Korea's public pension fund, the Korean Teachers' Credit Union (KTCU), is reportedly looking for a way to gain exposure to Bitcoin (BTC) through a crypto exchange-traded fund (ETF).

According to local news agency The Korea Economic Daily, Monday October 25, KTCU, one of the largest institutional investors in South Korea, is considering investing in a pure Bitcoin ETF or Bitcoin-related ETF in the first half of 2022.

According to the report, KTCU is considering investing in several Bitcoin ETF products, including one created by South Korean asset management firm Mirae Asset Global Investments. The company launched two ETFs that track the future value of Bitcoin through its Canadian subsidiary, Horizons ETF, in April 2021.

“Since there are several well-made cryptocurrency-related ETF products by asset managers such as Mirae Asset Global Investments Korea, we plan to invest in ETF products after consulting with domestic asset managers,” an executive at KTCU was quoted as saying by Cointelegraph.

The official also mentioned a potential investment in a Bitcoin ETF by Mirae Asset subsidiary Global X ETF, which filed a Bitcoin ETF with the United States Securities and Exchange Commission in July.

According to the report, KTCU is the second largest institutional investor in South Korea, with assets under management valued at US$40.2 billion (Rp570 trillion). The pension fund has allocated 40% of its investment in alternative assets, 10% domestic shares and 9% international. KTCU has not specified the size and other details of the potential Bitcoin ETF investment.

The news comes at a time when global pension funds are increasingly interested in gaining exposure to cryptocurrencies like Bitcoin and the big companies in the industry. Last week, the Houston Fire Relief and Retirement Fund reportedly purchased $25 million in Bitcoin and Ether (ETH). The Canadian Teacher's Ontario Retirement Plan Board is participating in a $420 million funding round for major crypto exchange FTX, the company announced on Thursday, last week.