The world’s largest pension fund, Japan’s Government Pension Investment Fund, recently revealed that it is considering exploring crypto diversification strategies for its portfolios.
Crypto adoption is rising globally, affirmed by a recent event in Japan. The Japan Government Pension Investment Fund (GPIF) is looking to diversify its investments across the crypto market. The decision toward crypto diversification could deeply impact the market since the GPIF is the world’s biggest pension fund. Capital inflows could surge, while crypto adoption across other global pension funds could also expand.
The GPIF recently published a document that revealed its plans. It noted the changing economic scenario of Japan and the world, and as a result, it was developing fresh long-term investment policies. Crypto diversification is a part of these plans. The research plans are for a five-year period and would consider risk management and sustainability while exploring new ideas.
Meanwhile, the announcement only entails getting new information and data on Bitcoin. The GPIF hasn’t made any concrete decisions about investing in Bitcoin yet, but it cannot be ruled out in the future.
Since its inception, the GPIF has focused mainly on infrastructure funds and traditional assets. It described its investing strategy as follows: “Our primary investment strategy is diversification by asset class, region, and timeframe. While market prices may fluctuate in the short term, GPIF will take full advantage of our long-term investment horizon to achieve investment returns in a more stable and efficient manner.”
Japan has been generally responsive to requests from the crypto industry. In 2023, the Japan Blockchain Association requested tax cuts on crypto transactions. In response, the government recently drafted new tax policies.
After exploring all its aspects and likely outcomes, the GPIF could also decide to invest in Bitcoin.
Millionero’s blog is a one-stop destination for all information from the crypto sector, with the latest news reports and articles!