South Korea’s National Pension Fund Invests Nearly $20 Million in Coinbase Shares
Reports from local media indicate that South Korea’s national pension fund invested almost $20 million in Coinbase shares in Q3 2023, reaping a 40% profit. According to a recent U.S. SEC filing, the National Pension Service (NPS) purchased 282,673 COIN shares at an average price of $70.5, totaling nearly ₩26 billion ($19.92 million).
The NPS, which manages over $750 billion in assets, has a policy of not directly investing in crypto assets. Instead, it uses crypto stocks as a proxy for gaining exposure to crypto prices without direct investment.
Coinbase’s Performance and Market Impact
Coinbase reported a third-quarter loss of $2.2 million in 2023, an improvement from the previous year’s $545 million loss for the same period. The crypto exchange has been chosen as a custodian for spot Bitcoin ETF applications by asset managers like BlackRock. This, along with the optimism around potential Bitcoin ETF approval, has helped drive Bitcoin’s price to almost $38,000 recently.
Additionally, Coinbase’s layer-2 network Base has reached $590 million in total value locked (TVL), as reported by L2Beat.
Hot Take: South Korea’s NPS Makes Profitable Investment in Coinbase
South Korea’s National Pension Service made a shrewd move by investing in Coinbase shares, netting an impressive 40% profit. This demonstrates the potential for institutional investors to leverage crypto stocks as a means of gaining exposure to the crypto market without direct investment in digital assets.
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