Cartwright, a British pension firm, has made waves by advising a 3% Bitcoin allocation for an unnamed pension fund. This strategic move, which bypasses traditional exchange-traded funds in favor of direct Bitcoin custody, is part of a push for innovative diversification to bolster resilience amid economic uncertainties.
Cartwright Advocates for Bitcoin in UK Pension Funds
The 3% allocation by Cartwright is notable for being 30 times higher than that of the Wisconsin Pension Fund and the largest allocation by any sovereign fund worldwide, as Bitcoin advocate Daniel Batten highlighted. Glenn Cameron, Cartwright’s head of digital assets, explained that this decision came after thorough discussions addressing environmental, social, and governance (ESG) considerations, the investment case, and security measures. The asset is secured through a private key managed by five independent institutions, showcasing an institutional-grade approach to Bitcoin custody.
Sam Roberts, Cartwright’s director of investment consulting, described the move as forward-thinking, stating that Bitcoin’s unique risk-return profile could offer pension funds meaningful diversification.
A Potential Trend for Institutional Investors?
Cartwright’s 3% Bitcoin allocation could set a precedent for UK institutional investors, as Roberts hopes this move inspires others to consider similar strategies. Steve Robinson, Cartwright’s head of investment implementation, emphasized the secure framework and risk management approach the firm has adopted, using a custodial solution designed to swiftly manage profit-taking and volatility.
US States Also Showing Interest in Bitcoin for Pension Funds
Across the Atlantic, interest in Bitcoin among U.S. pension funds has been growing. Florida’s CFO, Jimmy Patronis, recently requested an assessment for integrating Bitcoin into the state’s pension funds. Wisconsin and Michigan have also increased their Bitcoin holdings through ETFs, underscoring a broader trend of Bitcoin interest among institutional investors in public pension funds.
