Pension funds are planning to reap big rewards from the crypto industry amid a rise in traditional financial segment investment in the digital currency space.
According to a report by The Financial Times, in an indication that even traditionally conservative segments of the financial industry are finding it difficult to overlook the potentially enormous rewards from cryptocurrencies, pension funds are taking a tentative look at purchasing Bitcoin.
The move comes at a time when Bitcoin had seen skyrocketing gains from the past two months, making it evident that investors want to take big profits from the industry.
Pension Plans Invest Huge Money in Bitcoin ETFs
According to the report, among the largest investors of cryptocurrency-focused US stock market funds are pension plans for the states of Wisconsin and Michigan.
In recent months, some pension fund managers in the UK and Australia have also made modest investments in Bitcoin through funds or derivatives.
Conservative trustees are becoming increasingly interested in Bitcoin, according to advisers, after it more than doubled in value to reach $100,000 last year.
The majority of pension funds have resorted to regulated US exchange-traded funds, which track the price of tokens like Bitcoin and Ethereum and make direct cryptocurrency investments on behalf of investors.
As UnoCrypto reported earlier, banks, hedge funds, and pension funds are progressively putting money into exchange-traded funds (ETFs) that make direct investments in Bitcoin, indicating that traditional investors are beginning to accept the cryptocurrency more widely.
Wisconsin and Michigan Become One of the Biggest Crypto ETF Holders
The report also mentions that the State of Wisconsin Investment Board was the 12th largest shareholder in BlackRock’s bitcoin ETF at the end of September. The fund had increased by 50% since the beginning of the quarter, making the position currently valued at approximately $155 million.
Additionally, Michigan is the sixth-largest stakeholder in Grayscale’s Ethereum ETF, with a $12.9 million position. Additionally, it holds the eleventh-largest stake in the Cathie Wood-managed ARK 21Shares Bitcoin ETF, which has increased by 14% since the election.
Also Read: Florida Eyes Strategic Bitcoin Reserve By Q1 Of 2025, Bolstering Crypto Leadership
Rise in Crypto Asset Investment Comes as Bitcoin Surges To New Heights
The shift in the market sentiments comes amid a rise in the prices of Bitcoin and other cryptocurrencies, which has made many traditional investors change their view about the assets.
The green signal for the Bitcoin ETFs saw the first optimistic event take place in 2024, which gave the prices a steady rise. Later the victory of most pro-crypto candidates in the US 2024 lections further cemented the idea that crypto investments are likely to reap huge rewards.