UK Pension Fund Sees 60% Return After Allocating to Bitcoin

The UK-based Cartwright Pension Trusts advised an unnamed British pension fund to allocate 3% of its assets to Bitcoin in November 2024, resulting in a 60% return within 12 months.

The Bitcoin allocation indicates shifting attitudes towards digital assets, with potential implications for future institutional investments. The substantial return highlights Bitcoin’s asymmetric risk-return profile and its growing acceptance in traditional finance.

“Trustees are increasingly looking for innovative solutions to future-proof their schemes in the face of economic challenges. This bitcoin allocation is a strategic move that, not only offers diversification, but also taps into an asset class with a unique asymmetric risk-return profile. Our approach ensures that schemes can benefit from the significant potential upside whilst limiting the potential downside.” — Sam Roberts, Director of Investment Consulting, Cartwright

Sam Roberts, Director of Investment Consulting at Cartwright, played a pivotal role in advising a UK-based pension fund. The firm helped direct 3% of the fund’s assets into Bitcoin. The move, made in November 2024, resulted in a notable 60% return. Such returns substantially outperformed other traditional pension asset classes.

The decision by the fund marks the first known direct Bitcoin allocation by a UK pension scheme. Sam Roberts emphasized the innovative approach needed to tackle economic challenges. Arash Nasri, a senior consultant, noted increased industry interest. This strategic allocation underscores a shift in institutional perspectives toward cryptocurrencies.

Increased inquiries from other pension funds suggest a potential rise in institutional Bitcoin flows. Cartwright has already reported a surge in interest from institutional investors. The impressive returns and growing acceptance could influence more institutions to consider similar allocations.

Looking forward, experts highlight potential regulatory and financial impacts, including increased scrutiny and educational efforts surrounding cryptocurrencies. The initial success of Bitcoin allocation might prompt further exploration of digital assets. Cartwright has initiated an “Annual Bitcoin Review” for institutions.

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