British pension company makes first direct allocation to Bitcoin

British pension firm Cartwright has advised the allocation of 3% of BTC to an unnamed pension fund, which has invested directly in the asset rather than through an exchange-traded fund.

The company is now urging institutional investors to allocate assets to Bitcoin, according to a Nov. 4 report from industry magazine Corporate Advisor.

As a percentage, this is thirty times larger than the allocation of the Wisconsin Pension Fund and the largest allocation of any sovereign wealth fund in the world to date, noted Bitcoin lawyer Daniel Batten.

BREAKING: Cartwright, Billionaire UK Pension Fund Just Announces 3% Bitcoin Allocation

As a percentage, this is 30 times larger than Wisconsin’s pension fund allocation and the largest allocation of any sovereign wealth fund in the world to datehttps://t.co/84uz38dMgm

— Daniel Batten (@DSBatten) November 4, 2024

BTC in UK pension funds

The pension specialist stressed that integrating Bitcoin into pension plans is “a bold step that reflects the forward-thinking nature of the administrators involved.”

Glenn Cameron, head of digital assets at Cartwright, allocated 3% of his assets under management to Bitcoin after “lengthy consultations with the scheme administrators, where ESG, the investment case and safety”.

The investment uses direct Bitcoin custody, has a private key split between five independent institutions, and demonstrates an institutional-grade security approach.

Cartwright investment consultancy director Sam Roberts said investors and managers are increasingly looking for innovative solutions to “future-proof their plans in the face of economic challenges” before adding:

“This Bitcoin allocation is a strategic move that not only provides diversification, but also leverages an asset class with a unique asymmetric risk-return profile.”

He noted that the firm hopes the investment “will be the start of a trend for UK institutional investors to catch up”.

Meanwhile, Cartwright’s head of investment implementation, Steve Robinson, added that by using a custody solution with a mechanism to cut benefits quickly, “we’ve opened the door for negative pension plans to risk and other institutional investors to benefit from Bitcoin’s potential growth while managing volatility within a safe strategic framework.”

Bitcoin Pension Push in US

In late October, Florida Chief Financial Officer Jimmy Patronis said he wanted the agency that manages the state’s retirement funds to consider including them in Bitcoin.

Patronis sent a formal request to Chris Spencer, the executive director of the Florida State Board of Administration, asking for an evaluation of the feasibility of integrating Bitcoin investments into the state’s public funds.

In May, the Wisconsin State Board of Investments reported that it had invested $164 million in Bitcoin exchange-traded funds, increasing those holdings in August. In July, the State of Michigan Retirement System also disclosed BTC ETF investments.

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