South Korea’s National Pension Service Invests $20 Million in Coinbase Shares
South Korea’s National Pension Service (NPS), the world’s third-largest pension fund, recently made a significant investment in Coinbase shares. The NPS purchased 282,673 shares of Coinbase at an average price of $70.5, totaling around $19.92 million or 26 billion Korean won. This move comes as Coinbase’s stock and the broader virtual asset market have seen increased performance due to rising crypto trading volume.
This investment is notable given the NPS’s cautious approach to digital assets. While facing criticism for indirect investments in virtual asset-related businesses, the NPS has clarified that its investment is solely in the exchange and does not reflect a broader strategy involving cryptocurrencies.
Digital Assets Gain Traction in Pension Schemes
A recent Pensions Age survey indicated that many pension schemes see digital assets as a significant part of the investment landscape, offering opportunities for portfolio diversification. Despite initial criticism, the NPS’s acquisition of Coinbase shares has resulted in substantial profits, with the stock closing at $98.15, marking a profit of approximately 40% for the pension fund in just one quarter.
Hot Take
The NPS’s investment in Coinbase reflects a growing acceptance of digital assets in traditional financial institutions and signals a potential shift towards greater integration of cryptocurrencies into institutional investment strategies.
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