New Zealand’s KiwiSaver Growth Strategy fund is seeing its multi-million dollar Bitcoin allocation pay off big time in a span of five months.
Citing New Zealand Funds Management chief investment officer James Grigor, local news outlet Stuff reveals that the $244 million (NZ$350 million) retirement plan invested 5% of its capital in Bitcoin.
Grigor says the fund first bought the top crypto when it was worth $10,000 in October 2020. At time of writing, BTC is valued at $56,000, indicating that the fund’s investments grew 460% in less than half a year.
“If you are happy to invest in gold, you can’t really discount Bitcoin.”
The fund is part of the national KiwiSaver program that aims to help workers save for their retirement similar to a 401(k) account in the US.
On-chain analyst Willy Woo reveals that the fund printed huge gains after its Bitcoin allocation.
“NZ KiwiSaver pension fund, Growth Strategy.
What’s with the green boner?
Oh yeah, they bought a small allocation into Bitcoin Q4 2020.”
Woo adds that Bitcoin’s meteoric ascent from $10,000 to above $60,000 this month would have forced the fund to unload some of its BTC holdings.
“BTC would represent 20%+ of the fund in March 2021. I imagine they would have rebalanced since then, selling down some of their GBTC the last few weeks, given it’s a diversified fund…
3%-10% of Kiwi salary and wage income deploys into KiwiSaver, they have the option to pick the Growth Fund which is exposed to BTC. Hint hint.”
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