Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund with $1.4 trillion in assets, is exploring bitcoin as a new avenue for diversifying its portfolio. Amidst evolving societal, economic, and technological landscapes, GPIF is gathering information on bitcoin and other assets like gold, which it currently does not hold due to their illiquid nature. This inquiry includes academic studies, analytical tools, and investment examples, aiming to understand how these assets could fit into the pension fund’s diverse investments that already include bonds, stocks, private equity, real estate, and infrastructure.

While there is no certainty that GPIF will add bitcoin to its investment mix, the move signals openness to considering digital currencies, which have been advocated for as ideal pension fund investments due to their low correlation with traditional assets. Notably, some pension funds globally, such as the Houston Firefighters pension fund and South Korea’s National Pension Service, have already ventured into bitcoin and crypto-related assets. This exploration by GPIF marks a significant potential endorsement for bitcoin, underscoring its growing acceptance among institutional investors.

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