UK Starts to Look at Bitcoin Pension Funds as an Alternative

Bittime - UK is starting to look at Bitcoin pension funds as a new alternative for pension fund investments. This move is considered revolutionary, considering Bitcoin previously was rarely considered as a retirement fund.

However, with more and more companies and institutions looking at digital assets, this trend is starting to change. The UK also has the potential to become a pioneer in Europe when it comes to Bitcoin pension funds.

First Bitcoin Pension Funds in UK

Not long ago, someone in the UK allocated 3% of his total assets worth £50 million (around $65 million) into Bitcoin. 

This Bitcoin pension fund was encouraged by British pension fund consultant Cartwright, who invited institutional investors to consider Bitcoin as part of an investment portfolio. 

Cartwright explained that this decision was the result of long discussions with pension fund trustees who reviewed aspects of sustainability (ESG), investment potential and the security of this digital asset.

According to reports from Corporate Advisor, this investment is the first Bitcoin pension fund in the UK, which is directly through Bitcoin, rather than through other instruments such as ETFs.

Read Also: Analyst Predicts Bitcoin Bullish Trend Before Election!

Bitcoin Pension Funds: Security is the Main Priority

The decision to have a Bitcoin retirement fund certainly cannot be separated from strict security aspects. In this investment, the Bitcoin private key is shared between 5 independent institutions to ensure that access to the asset remains safe and secure. 

This differs from some other pension schemes, such as the Wisconsin state pension fund in the US. The Wisconsin pension fund also recently announced an investment in Bitcoin, but via an ETF, and at just 0.1% of total assets. 

This makes the UK pension fund's 3% Bitcoin investment look more significant and reflects the UK pension fund trustee's courage in facing the crypto market.

Bitcoin Pension Funds Scheme for Employees

In addition to the Bitcoin retirement fund example above, Cartwright also launched a new product called “Bitcoin Employee Benefits Scheme”. 

Through this scheme, companies can pay part of employee compensation or bonuses in the form of Bitcoin. Currently, at least 5 companies have shown interest in using this Bitcoin pension scheme for their employees.

This program opens up opportunities for employees to start owning Bitcoin as an investment asset without needing to buy directly on a crypto exchange. This scheme can be an attractive alternative for building long-term wealth.

Prospects for Bitcoin Pension Funds 

Although Bitcoin pension funds are still relatively new, this could be the start of a retirement fund trend. Bitcoin is considered digital gold because of its scarcity and inflation resistance, so it has the potential to be a long-term hedge.

However, this investment also requires caution. The crypto market is known for its high volatility, so it requires good strategy and risk management. 

Cartwright himself admitted that the decision to have a Bitcoin retirement fund was a bold move and not necessarily suitable for all investors. 

If this investment proves successful and provides profits, Bitcoin pension funds could become one of the standard investment options, both in the UK and in other countries.

Read Also: Analyst: Bitcoin Mining Stocks Rise 24% Thanks to AI and Economic Situation

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