National Pension Service of South Korea Makes Profitable Investment in Coinbase, Achieving 40% Return

South Korea’s National Pension Service Invests in Coinbase

Government institutions are now seeking exposure to crypto firms as the industry matures. In the latest announcement, South Korea’s largest investment group, National Pension Service, invested in Coinbase (NASDAQ: COIN) during the third quarter of 2023.

First Virtual Asset-Related Company in U.S. Stock Portfolio

For the first time, the National Pension Service has included a virtual asset-related company in its U.S. stock portfolio. According to a stock holdings report filed with the U.S. Securities and Exchange Commission (SEC) on the 16th, the National Pension Service acquired 282,673 shares of Coinbase stock in the third quarter, valued at $19,934,100 or 26.1 billion won.

Despite its policy of avoiding direct investments in virtual assets due to volatility, the National Pension Service seized an opportunity with Coinbase’s stock and made a profit of about 40% in just one quarter following Bitcoin’s surge.

Pension Schemes Seeking Direct Crypto Exposure

During the crypto bull run of 2021, some pension schemes sought direct exposure to crypto assets despite their historically cautious approach.

COIN Stock Rally Continues

The rally in Coinbase (COIN) stock has continued since it announced strong Q3 numbers two weeks back. On Tuesday, November 15, the COIN stock price surged by another 6.58%, moving closer to $100.

Amidst the crypto winter of 2022, Coinbase stock witnessed a brutal correction by eroding 90% of its value since public listing in 2021. However, since then, the Coinbase stock has gained a phenomenal 200% so far in 2023 but still trades at a 66% discount from its all-time high levels.

Cathie Wood Offloads COIN Stock

Some of the biggest market players have been investing in Coinbase this year; however, Ark Invest’s Cathie Wood has offloaded COIN stock at every rise.

Hot Take: Government Institutions Seek Exposure to Crypto Firms

The crypto industry is witnessing increased interest from government institutions seeking exposure to crypto firms as they continue to mature. South Korea’s National Pension Service’s investment in Coinbase is significant as it marks their first virtual asset-related company inclusion into their U.S. stock portfolio. This move follows other pension schemes seeking direct exposure to cryptocurrencies during the 2021 bull run. The rally in COIN stock continues despite market fluctuations and corrections, pointing to growing institutional interest in crypto firms.