- A UK pension fund gained a 60% return in under a year after allocating 3% of its assets to Bitcoin.
- Cartwright Pension Trusts reports rising interest from other institutional clients regarding Bitcoin investment.
- The firm launched an Annual Bitcoin Review to educate institutions on cryptocurrency.
- Some resistance remains within the industry due to concerns over Bitcoin’s volatility.
- Corporations and charities are exploring Bitcoin for transactions and donations, but suitability depends on investment time horizon.
A UK pension fund achieved a 60% return in less than 12 months after investing 3% of its portfolio in Bitcoin in November 2024, according to Cartwright Pension Trusts. The company said interest in Bitcoin from other clients, including institutions and charities, has increased since the successful investment.
Cartwright Pension Trusts has introduced its first Annual Bitcoin Review to raise awareness about cryptocurrency among institutional investors. Senior investment consultant Arash Nasri described the wider reaction from the industry as “surprisingly positive,” though he noted ongoing discussions with several other clients considering similar moves.
“If Bitcoin continues to produce the returns we anticipate, the decision will more likely be ‘when should we trim?’” Nasri explained, referring to potential future adjustments to Bitcoin allocations in pension fund portfolios. He emphasized that pension funds should gain a solid understanding of how Bitcoin works and approach investments with a long-term perspective.
Nasri also stated that Cartwright Pension Trusts acts as an independent adviser and does not have direct financial involvement in the assets. “We are independent advisers who have built a deep understanding of the potential impact of Bitcoin in coming years on individuals, companies, asset owners and governments. We see it as our fiduciary duty to investors to raise awareness,” he said.
Some individuals in the pensions industry remain skeptical because of Bitcoin’s price volatility. Nasri added, “A common retort has been that Bitcoin’s price is too volatile. This is disappointing to hear as our industry should be experts in portfolio construction and position sizing.” He also noted resistance among some professionals to learn about new forms of money and technology.
Interest in Bitcoin is not limited to pension schemes. Nasri reported that corporations and charities are looking at Bitcoin for uses such as international transactions and receiving donations. However, he advised that Bitcoin may not fit all investment needs, specifically where the time horizon is short. For longer-term investors like defined benefit and defined contribution schemes, as well as many charities and companies, he stated, “there should be a serious conversation about it.”
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