The public pension fund in South Korea, Korea’s teachers trading union, has plans to go the crypto way. And they might do it by way of investing in a Bitcoin ETF. So, KTCU announced that it’s planning to invest in Bitcoin through ETFs or linked funds in early 2022. Moreover, the South Korean institution is among the largest institutional investors within Korea.
The Pension Funds plans to invest in Bitcoin ETF products. This way, they target Mirae Asset Global Investments (MAGI). MAGI offers bitcoin investment opportunities through its funds.
The firm preyed on a fortune to start two new ETFs tracking BTC costs from its Canadian satellite. Now, the Horizons ETFs back in April 2021.
“There are some well-made crypto-linked ETFs by asset managers. For example, the Korea’s MIGA. KTCU plan to invest in the ETF products after deliberation with local asset managers.” An executive at KTCU reportedly said.
The largest institutional investor will try Bitcoin ETF
Mirae Asset’s subsidiary, Global X ETF’s filed for a bitcoin ETF with US SEC earlier this year on July 6th. According to reports, KTCU is placing itself for a potential stake in a Bitcoin ETF via Global X ETS’s.
The KTCU is a top investor in South Korea and manages 40.2 billion dollars worth of investments. This qualifies it as the second-largest institutional investor on that side-of-the world.
There is diversity in KTCU’s investment portfolio and includes many different asset classes. The pension fund has allocated 40% of its investments in alternative assets. 10% domestic and 9% international stocks.
To date, the size they have determined for a potential Bitcoin ETF remains unknown. However, it will be interesting to see how this develops over time.
The global phenomenon of cryptocurrency investments is on the rise. Major international pension funds are beginning to take notice. It heralds the growing awareness among financial institutions for this new asset class. Cryptocurrency holds significant potential. Yet, it also comes with heightened risks due to its volatility.
Recently, the Houston Firefighters’ Relief and Retirement Fund bought $25 million in Bitcoin. This is a big deal for the fire department. They have been exploring ways to diversify its investments.
Besides, Canada’s Ontario Teachers’ Pension Plan is the latest investor to go crypto. The institution invested in major crypto exchange FTX. Its initial total commitment value stands at $420 million.