National Pension Service of South Korea Invests in Coinbase Global
According to regulatory filings with the U.S. Securities and Exchange Commission (SEC), the National Pension Service of South Korea purchased 282,673 shares of Coinbase Global in the third quarter of 2023, marking its first venture into the cryptocurrency sector. The pension fund, established in 1988, is the world’s third-largest and is managed by the National Pension Service Investment Management (NPSIM), which requires enrollment for both Korean citizens and foreign residents in Korea. The SEC filing revealed that the NPS invested approximately $20 million in Coinbase Global during this period.
The NPS’s investment in Coinbase has seen a 40% increase in value since its purchase, with shares currently trading at $98.15 each, a 26% increase over the last month. This move aligns with a global trend where many entities are choosing to invest in stocks of publicly traded firms within the cryptocurrency sector as a lower-risk alternative to direct crypto holdings.
The National Pension Service reportedly manages assets worth around $755 billion and has experienced varied performance in recent years. In 2022, it endured a negative accumulated return of -79.6 trillion won ($60.17 billion), resulting in an annualized return of -8.22%. However, this year has been more favorable, with a positive return of 95.2 trillion won ($71.96 billion) thus far. The fund’s pivot to investments in the crypto sector may be an attempt to counterbalance losses incurred last year.
Hot Take: Diversifying into Crypto
The National Pension Service’s decision to invest in Coinbase Global reflects a growing trend among traditional investment funds diversifying into the cryptocurrency sector as a means of mitigating risk and capitalizing on potential growth opportunities.
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