A UK pension scheme has come under fire for investing in Bitcoin. This £1.5 million investment came from its £50 million asset pool, aimed at enhancing employee returns. This move occurred before Bitcoin prices surged significantly after Trump's election victory.
Several experts criticized the pension fund's decision, warning that it risks "gambling with retirees' futures."
Colin Low, managing director at Kingsfleet, called the move "strange." He believes that pension funds should prioritize long-term investments rather than speculative bets. Low pointed out the irony of a fund with such a long investment horizon betting beneficiaries' assets on Bitcoin, which he thinks lacks intrinsic value.
Daniel Wiltshire, an actuary at Wiltshire Wealth, called this investment "extremely irresponsible." He emphasized that pension trustees must manage assets with caution and urged UK financial regulators to intervene to protect members.
However, there are also opinions supporting the fund's approach. Chris Barry, a director at Thomas Legal, stated that allocating less than 5% of funds to cryptocurrencies is "wise" and urged UK pension funds to follow the example of their American counterparts, which have been investing in cryptocurrencies for years. (Sky News)
According to previous reports, the UK pension fund consultancy Cartwright is urging institutional investors to allocate assets to Bitcoin and has successfully guided the country's first pension fund to allocate this asset.
Glenn Cameron, head of digital assets at Cartwright, stated that the unnamed fund allocated 3% of its £50 million ($65 million) to Bitcoin last month, following "extensive consultations with the plan's trustees, during which ESG, the investment case, and security were discussed in detail." #bitcoin