An important development in the financial landscape of the United Kingdom happened when a pension scheme advised by Cartwright allocated 3% of its funds which is approximately $59 million to Bitcoin.
This is the first time a British-defined benefit plan has made a direct bitcoin investment as opposed to using an indirect strategy like ETFs.
Reportedly the decision was made after considerable due diligence to make sure it fit within the scheme's long-term investment strategy and risk management framework.
This is seen as a strategic move that is aimed at diversifying the investment portfolio and harnessing Bitcoin's unique asymmetric return potential. This investment is in line with the scheme's ten-year investment horizon and shows a growing trend among trustees to look for innovative solutions in times of economic challenges, according to Sam Roberts from Cartwright.
According to Cartwright, the investment has been set up with operational security in mind, and that security has been enhanced by using a multi-signature technique with three custodians. This is something that is expected to influence other United Kingdom schemes to consider similar allocations, which could potentially lead to wider institutional adoption of crypto in the future.
In addition to this, Cartwright has plans to launch a Bitcoin Employee Benefits program which would allow employers to deposit Bitcoin directly into the wallets of the employees. This step has reportedly attracted interest from several companies showing a growing acceptance of crypto within traditional financial structures.
This is deemed a historic move by the United Kingdom pension scheme which not only marks a remarkable leap into the space of crypto but also a precedent for future institutional investments in crypto.
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