tl;dr
A UK pension fund made history by allocating 3% of its portfolio to Bitcoin in November 2024, guided by Cartwright Pension Trusts. This investment yielded a 60% return within a year. Despite some skepticism about Bitcoin’s volatility, the pension industry’s response has been positive. Cartwright str...
A UK pension fund made history by adding Bitcoin to its balance sheet, marking the first occurrence of this kind in the country. Cartwright Pension Trusts, a pensions advisory firm, guided an unnamed British client to allocate 3% of their portfolio to Bitcoin in November 2024. This strategic move proved lucrative, yielding a remarkable 60% return within less than a year.
Arash Nasri, senior investment consultant at Cartwright, shared that the wider pension industry’s response has been “surprisingly positive,” despite some skepticism about Bitcoin’s price volatility. Cartwright emphasizes the importance of pension funds being well-informed about Bitcoin's mechanics and building allocations gradually with a long-term view. The firm does not hold any stake in Bitcoin but sees it as a fiduciary duty to raise awareness about its potential impact on investment portfolios.
Bitcoin’s value has seen extraordinary growth over the past decade, rising close to 100,000% since 2013. Nasri revealed ongoing discussions with other clients considering similar Bitcoin allocations, highlighting that decisions will depend on Bitcoin’s returns in the future. If the positive trend continues, pension funds might face decisions about trimming their holdings rather than increasing them.
Beyond pension funds, Cartwright reports growing interest from corporations seeking Bitcoin as a tool for 24/7 cross-border payments and as a reserve asset. Charities also view Bitcoin increasingly as a viable donation source. However, Nasri cautions that Bitcoin is not a suitable investment for those with short-term horizons but encourages many defined benefit schemes, defined contribution schemes, charities, and companies to seriously consider its inclusion.
Cartwright recently launched its first "Annual Bitcoin Review" to educate the institutional community about Bitcoin’s potential, reflecting the firm's commitment to fostering greater understanding of this emerging asset class in traditional finance sectors.