Retirement Funds Starting to Buy Bitcoins Nasdaq Say

[nikolastech]

New Zealand retirement fund reportedly allocates 5% to Bitcoin
https://www.nasdaq.com/articles/new-zealand-fund-manager-puts-5-of-retirement-plans-assets-into-bitcoin%3A-report-2021-03-26

We all know how much money retirement funds have, so super good they starting buying, others will follow

[dothebeats]

This is awesome and scary at the same time. A lot of huge companies are already trying to get a piece of the pie on large increments. Should there ever be a huge crash, we all know that these entities aren't as die-hard as most of us here, and would surely cut losses that'll send bitcoin into an even deeper pit.

Perhaps this is one of the chapters wherein bitcoin is really getting big and companies can no longer ignore bitcoin, and this is also that chapter wherein bitcoin is very fragile IMO.

[Jating]

New Zealand retirement fund reportedly allocates 5% to Bitcoin
https://www.nasdaq.com/articles/new-zealand-fund-manager-puts-5-of-retirement-plans-assets-into-bitcoin%3A-report-2021-03-26

We all know how much money retirement funds have, so super good they starting buying, others will follow

Big gamble on them, but they probably play it safe by just allocating 5% of it to bitcoin. Otherwise, if we see the price suddenly goes down, we don't know if the people behind are going to hold on it or just sold because they panic.

Anyhow, this is welcoming news for bitcoin though, good exposure to say the least. And probably others might say that this could be considered as getting closer to mass adoption.

[Lorence.xD]

This is awesome and scary at the same time. A lot of huge companies are already trying to get a piece of the pie on large increments. Should there ever be a huge crash, we all know that these entities aren't as die-hard as most of us here, and would surely cut losses that'll send bitcoin into an even deeper pit.

Perhaps this is one of the chapters wherein bitcoin is really getting big and companies can no longer ignore bitcoin, and this is also that chapter wherein bitcoin is very fragile IMO.

Exactly, with bitcoin not having been tested yet if it can survive for a hundred years, it will definitely scare someone but you are also right that it is awesome because this means that we can test bitcoin and its capabilities to be used as a retirement fund. We can't do much about this but to hope for the best and continue hodling bitcoin until we are satisfied with the prices.

[Poker Player]

This is awesome and scary at the same time. A lot of huge companies are already trying to get a piece of the pie on large increments. Should there ever be a huge crash, we all know that these entities aren't as die-hard as most of us here, and would surely cut losses that'll send bitcoin into an even deeper pit.

For me it's not scary. Contrary to what you say, this type of investment funds are not going to sell Bitcoin simply because there is a moment of panic in the market, unlike what retail investors do.

To me this is good news and what I believe is that there is going to be a day in a few years when most investors in the stock market are going to be exposed in some way or another to bitcoin, either because they own a fund or stocks that have bought Bitcoin or because the companies owned allow the purchase of Bitcoin through them as happens with Paypal. This is along the lines of normalization and mass adption and is nothing but good.

Market crashes will always happen and it is one thing we cannot avoid.

[larus]

I always thought that btc is too risky for such kind of funds

[dkbit98]

This is good news but NZ was not the first pension fund that invested in Bitcoin and Norwegian Government Pension Fund, better known as Oil Fund, invested in Michael Saylor's MicroStrategy back in 2020.
I would call this a smart investment and I am sure other countries will follow sooner or later, and even few percent investment will make a huge difference for Bitcoin.

Check out this Forbes article from 2019 when Bitcoin was near $4000 when even crypto sceptic Peter Tchir said that pension funds purchasing Bitcoin would push prices much higher, and that actually happened:
https://www.forbes.com/sites/petertchir/2019/02/23/pension-funds-investing-in-crypto-is-a-big-deal/

[cryptomaniac_xxx]

I always thought that btc is too risky for such kind of funds

BTC has always been risky, no matter what, it's how they mitigate the risk that's it. As as you can see I would say that the investment was just a blip on their billion dollar retirement fund. Yes, it's a scary to think about retirements funds being invested on volatile asset, but they are more willing to take that risk. And pretty sure they have studied it, and we might see another first world country following what NZ and Norwegian government has done.

[bitmover]

This is good news but NZ was not the first pension fund that invested in Bitcoin and Norwegian Government Pension Fund, better known as Oil Fund, invested in Michael Saylor's MicroStrategy back in 2020.
I would call this a smart investment and I am sure other countries will follow sooner or later, and even few percent investment will make a huge difference for Bitcoin.

Pension funds hold a lot of money. The impact in bitcoin price could be huge.

However, regulations and laws do not allow them to buy bitcoin directly (at least in most countries). But I believe some of them could buy a bitcoin ETF, or a Bitcoin fund.

This is why ETFs are important for institutional investors, mostly due to regulations.

[mazdafunsun]

This is awesome and scary at the same time. A lot of huge companies are already trying to get a piece of the pie on large increments. Should there ever be a huge crash, we all know that these entities aren't as die-hard as most of us here, and would surely cut losses that'll send bitcoin into an even deeper pit.

I dont think so , these funds are long term players. Even if the price tanks for in few months time or even 1-2 years time, they wont sell as the classical retail investors who are mostly investing for the short term and will get scared easily. Also they are allocating small amount of their portfolio.

[tinopener]

New Zealand retirement fund reportedly allocates 5% to Bitcoin
https://www.nasdaq.com/articles/new-zealand-fund-manager-puts-5-of-retirement-plans-assets-into-bitcoin%3A-report-2021-03-26

We all know how much money retirement funds have, so super good they starting buying, others will follow

Yes, I read about this elsewhere too and was pleasantly surprised that it was a backwater like New Zealand.

[tinopener]

I always thought that btc is too risky for such kind of funds

Not at all. A lot of these funds have an element of "total return" whereby they don't necessarily produce large returns over the long term, but predictable positive returns over any span of time.

They will use all sorts of tricks like derivatives as well as the usual instruments like bonds and equities. Although they seem boring, they are doing a lot of complex transactions to try to keep the books balanced.

Although not a retirement fund, Ruffer Ltd in the UK was the first of these sort of companies to buy into Bitcoin, and immediately took profit when it reached a new all time high.

[ecnalubma]

I always thought that btc is too risky for such kind of funds

What investment has no risk anyway?

Its the retirees last shot for investment, 5% of their retirement fund is good start to allocate for Bitcoin. Soon more nationalities from government or private sectors will be involve in this space allocating their retirement money for Bitcoin.

[teosanru]

New Zealand retirement fund reportedly allocates 5% to Bitcoin
https://www.nasdaq.com/articles/new-zealand-fund-manager-puts-5-of-retirement-plans-assets-into-bitcoin%3A-report-2021-03-26

We all know how much money retirement funds have, so super good they starting buying, others will follow

Even though I think they must be putting in this money after a lot of risk analysis and hedging but still I feel putting even 5% of a "retirement fund" in such a risky asset. Is it really worth it? I feel that most of the Retirement funds aim at rather plain vanilla-type returns with minimal risk so as to ensure that the hard-earned money of Employees doesn't end up being screwed. While investing in Bitcoin would be profitable in the long run yet I think it's a very brave thing to do as Bitcoin still has no established theory using which you can calculate a sort of intrinsic value for it. So the only thing these people are speculating on is Price and nothing else.

[buwaytress]

That's at least a handful I know of just from these headlines then, I thought, and then I read it's under their Labour party. Still some way of from state pension funds like Norway that started many years ago though so they're ahead of the curve. Don't believe many Kiwis would put as much as 5% though. They'd need quite a bit of majority vote at the funds and as much as I like them, can't see anyone in any financial department vote for that much allocation, so probably needs a bit more detail than this. Still, I'd love to join such a fund if I were from there;)

[jerrison]

Bitcoin as a project keeps the world going in flames as how it came into existence and started disruption of regular banking systems that are age old. Many folks didn't put their eyes out there to the tech but they kept on waiting for the wealth in the normal thoughts they presumed but now they are seeing it in a different light as they now consider it a worthy investment for their retirement plans.

[batang_bitcoin]

Years ago IIRC, there have been people who have already talked about this. They're putting a sum of their money to bitcoin and they'll forget it as it will serve as their retirement.

I always thought that btc is too risky for such kind of funds

It is risky in a sense if they don't understand what bitcoin is. But if they're aware what could be the risk that it has and I guess they're ready to take it and they're fine to do so.

[Hamphser]

New Zealand retirement fund reportedly allocates 5% to Bitcoin
https://www.nasdaq.com/articles/new-zealand-fund-manager-puts-5-of-retirement-plans-assets-into-bitcoin%3A-report-2021-03-26

We all know how much money retirement funds have, so super good they starting buying, others will follow

Big gamble on them, but they probably play it safe by just allocating 5% of it to bitcoin. Otherwise, if we see the price suddenly goes down, we don't know if the people behind are going to hold on it or just sold because they panic.

Anyhow, this is welcoming news for bitcoin though, good exposure to say the least. And probably others might say that this could be considered as getting closer to mass adoption.

Wanna say the same thing on where they do risk only 5% in form of bitcoin but i do believe that once they do saw that they had already make out some increase then for sure they will allocate more.

The question is, are they aware of the risk? For sure they do because they wouldnt be putting 5% if they dont know on what theyre doing.Bitcoin is volatile and they wouldnt like to risk

out those retirement funds into something which is volatile. 5% might do but it wouldnt be bad if reconsider on putting at least 10-15%.

[AmoreJaz]

This is awesome and scary at the same time. A lot of huge companies are already trying to get a piece of the pie on large increments. Should there ever be a huge crash, we all know that these entities aren't as die-hard as most of us here, and would surely cut losses that'll send bitcoin into an even deeper pit.

Perhaps this is one of the chapters wherein bitcoin is really getting big and companies can no longer ignore bitcoin, and this is also that chapter wherein bitcoin is very fragile IMO.

you have a point on that. since these companies are concerned about their financial conditions, they will have no qualms selling it when the right time for them comes. though it is good for the crypto community as they may drive more adoption as people will see that more and more big institutions are joining the crypto community. however, those people who are putting their hard-earned money whether savings or for retirement, should really think of possible repercussions of their decision. they need to present themselves the worst case scenario  here . or plan contingencies that would be their backup plan when things go sideways.

[Ryker1]

Well, perhaps bitcoin will become retirement funds if it will continuously have growth. But as above says, it is indeed a very crucial thing because you don't even know when it will crash too hard or you will perhaps lucky so much when the bitcoin price doubled as you have invested. There is a possible risk here that you should understand from the start and that is much better if you are aware in the first place. We don't know what will happen next, bitcoin will pump or dump but I have a strong feeling bitcoin will become the most popular digital asset that can store value.