Pension funds are investment pools that manage people’s retirement savings. They aim to encourage long-term saving and provide financial security to retirees. But some pension funds in the US, UK and elsewhere have recently begun investing in cryptocurrencies, an asset class renowned for its volatility.
In the US, for example, bitcoin derivatives such as exchange-traded funds (ETFs) are becoming a popular choice for pension schemes in the states of Wisconsin and Michigan. ETFs are baskets of investments that can be bought and sold on a stock exchange and aim to replicate the performance of a given market.
Bitcoin and ethereum ETFs track the prices of these cryptocurrencies, offering fund managers exposure without the need to buy or manage digital assets directly.
The interest in cryptocurrencies is being driven by their surging price. In December 2024, on the back of Donald Trump’s endorsement of digital assets…
