South Korea Teacher’s Credit Union is adding BTC to their balance sheet. Reports suggest that the union has nearly $40 billion in assets, and they plan to start investing in BTC from next year. To gain exposure to Bitcoin, the credit union is planning to wait till a BTC ETF is launched in Korea. And this is expected to happen in the first half of 2022. They have no interest in buying Bitcoin directly from exchanges.
What does this mean?
Korea Teacher’s Credit Union will become the first pension fund in South Korea to add BTC to their balance sheet. It means that in the future, we can expect other pension funds to follow suit and allocate something to BTC as well. As of now, I am dearly waiting for the launch of the first BTC ETF in South Korea.
An official from the credit union said, “As there are some well-made cryptocurrency-linked ETF products by asset managers such as Korea’s Mirae Asset Global Investments, we plan to invest in the ETF products after consultation with domestic asset managers.” As of now, they have 40% of their assets in alternative assets, 10% in domestic, and 9% in foreign stocks. So, a hefty addition of BTC will add an excellent balance to the portfolio.
Other pension funds adding BTC
While Korea Teacher’s Credit Union plans to add BTC to their balance sheet, the Houston fund already did. They look after 6,600 active and retired firefighters and their families. Active ones contribute 9% of their salary to the fund, and the fund adds more than double that. At present, it is estimated to hold around $5.5 billion in assets and has invested $25 million into BTC and ETH. This shows that as the price of BTC hit an all-time high, the adoption rates are skyrocketing.
I think it’s happening, the period when we will see BTC and crypto everywhere. The adoption is at its peak; almost every company, fund, the bank is getting involved in Bitcoin in some way or the other. Maybe this is what it looks like before a parabolic bull run.
What are your thoughts on the KoreaTeacher’ss Credit Union adding BTC? And do you think that more pension funds in the country will follow it soon? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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