Bitcoin catches the attention of the world's largest pension fund based in Japan


Bitcoin, the crypto sector's most expensive asset, is attracting the attention of Japan's pension funds. Japan's largest pension fund is looking to diversify its investment portfolio by shifting focus away from traditional assets. The information was disclosed this week by Japan's Government Pension Investment Fund (GPIF). Bitcoin's appeal is no longer being noticed by GPIF as it is going through a bullish phase and its price is fluctuating between $66,000 (approximately Rs 54 lakh) and $73,000 (approximately Rs 60.5 lakh).

Japan's GPIF is estimated to have assets worth $1.4 trillion (approximately Rs 1,16,22,086 crore) under its control. The GPIF is set to be the world's largest pension fund by 2022, according to Spanish investment research firm RankiaPro.

Going forward, GPIF is exploring changes it can incorporate to deal with the evolving financial landscape. The organization is launching a research program that will last for five years during which it will study other potential investment instruments.

GPIF's document outlining its BTC-friendly research plans, published in Japanese, states that assets currently managed by the firm include agricultural land, gold, bitcoin.

As of now, the body has limited investment options in traditional assets like domestic and international stocks, bonds – aimed at mitigating financial risks and ensuring stable returns.

A report from states that GPIF's interest in exploring Bitcoin as an investment option comes as a result of continued demand for the inclusion of the digital asset.

The crypto market in Japan has seen significant growth in the last year. By the end of 2023, it was estimated that more than five million Japanese residents held cryptocurrencies.

The Japanese government under Prime Minister Fumio Kishida is taking a supportive approach towards the crypto sector. In January this year, Japanese e-commerce major Mercury reportedly said it planned to accept Bitcoin payments in the coming months.

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