First UK pension fund to invest in Bitcoin
Date: 2024-11-05 Author: Gabriel Deangelo Categories: BUSINESS
UK pension fund specialist Cartwright has organised the first UK pension fund to invest in Bitcoin. The unnamed fund has invested 3% of its assets directly in the cryptocurrency, avoiding intermediaries such as exchange-traded funds (ETFs). Cartwright has also announced the launch of a “Bitcoin for Employees” programme that will allow employers to transfer Bitcoin funds to employees’ personal wallets.
Cartwright’s head of digital assets, Glenn Cameron, explained that the decision to invest was the result of extensive consultation with the fund’s trustees, focusing on environmental, social and governance (ESG), investment and security aspects. The fund has allocated 3% of its £50 million (around $65 million) in assets to buy Bitcoin, making this an especially significant investment.
Unlike the Wisconsin Pension Fund, which previously invested in Bitcoin through an ETF and allocated only around 0.1% of its assets to this, the UK pension fund has decided to allocate a much more substantial 3%. Interestingly, to ensure security, the private key to the Bitcoin asset is divided between five independent organizations, which reduces the risk of loss or unauthorized access.
The “Bitcoin for Employees” program developed by Cartwright will attract the attention of companies looking to offer innovative ways to pay their employees. So far, five companies have expressed interest in the program. Cartwright sees the initiative as an opportunity to expand financial services by offering employers a new way to reward employees.
Cartwright has not yet disclosed how much assets it manages. According to LinkedIn, the company has between 51 and 200 employees and is headquartered in Hampshire, UK.
