The National Pension Service of South Korea Invests in Coinbase
The National Pension Service (NPS) of South Korea has made history by including Coinbase, a major cryptocurrency exchange listed on Nasdaq, in its U.S. stock portfolio. This represents the first time the pension fund has invested in a virtual asset-related company, signaling a trend of institutional investment in the cryptocurrency industry.
NPS Purchase of Coinbase Stock
According to a report submitted to the U.S. Securities and Exchange Commission, the NPS purchased 282,673 shares of Coinbase stock worth $19.934 million in the third quarter. This investment has already yielded a 40% return, as the shares were bought at an average price of $70.50 each during that period.
Coinbase Stocks Surge Alongside Bitcoin Rally
Coinbase’s stock price surged 6.58% on Wednesday, closing at $98.15 on Nasdaq. This represents a 192.1% increase from the beginning of the year when it was trading at $33.60. The company’s third-quarter earnings report showed a revenue of $674.1 million, up 14.2% year-on-year, and a net loss of $2 million.
The potential approval of spot bitcoin exchange-traded funds in the U.S. and the recent surge in the price of bitcoin have excited crypto-curious investors, leading to increased investment levels in crypto-related stocks.
Hot Take: Growing Acceptance of Cryptocurrencies by Traditional Financial Institutions
The NPS’s investment in Coinbase marks a significant shift in traditional financial institutions’ attitudes towards cryptocurrencies and digital assets. It demonstrates an increasing acceptance and adoption of virtual assets by institutional investors, further solidifying the legitimacy and potential of the cryptocurrency industry.
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