New Zealand’s KiwiSaver Fund Enters Bitcoin Market

KiwiSaver Growth Fund, an investment fund in New Zealand, has reportedly allocated around 5% of its overall investment to Bitcoin. James Grigor, Chief Investment Officer at NZ Funds said that Bitcoin will feature in more KiwiSaver schemes within the next five years.

According to a report published by Stuff, a news agency based in New Zealand, the investment firm purchased Bitcoin for the first time in October 2020 when the world’s largest cryptocurrency was trading at around $10,000.

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Bitcoin touched an all-time high of $61,000 earlier this month. As of writing, the digital currency is currently trading near $53,000, which means that the KiwiSaver fund has already registered substantial gains on its BTC holdings.

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“If you are happy to invest in gold, you can’t really discount bitcoin. Our KiwiSaver is majority built up through traditional assets classes, your bonds, and shares, and they will always be the asset classes that compound over time to give people the best retirement they can get. But, there’s going to be times when it’s not always going to be plain sailing. You may still have a positive view of those asset classes, but other opportunities present themselves,” Grigor told Stuff.

Bitcoin and Gold

Grigor compared Bitcoin with gold and termed BTC as a commodity and a good store of value. He added that the digital currency has many characteristics like gold. Ray Dalio, an American Hedge Fund Manager and Founder of Bridgewater associated mentioned in December 2020 that the world’s largest cryptocurrency has established itself over the last 10 years, and BTC is similar to gold. The latest announcement from KiwiSaver Growth Fund came after several institutions around the world revealed their BTC exposure. MicroStrategy, Square, Tesla and Grayscale are holding Bitcoin in large amounts.

Financial giant Fidelity revealed earlier this week that the company is planning to launch a Bitcoin ETF. According to the SEC filing, Fidelity’s Wise Origin Bitcoin Trust will provide direct exposure to BTC.

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