Japan's largest pension fund eyes bitcoin amid crypto market growth

Tokyo: Bitcoin, the most valuable cryptocurrency, has caught the attention of Japan's largest pension fund, signaling a potential shift in investment strategy away from traditional assets.

The Government Pension Investment Fund (GPIF) of Japan revealed this week its consideration of diversifying investment portfolios to include Bitcoin, amidst the digital asset's recent bull run.

With approximately $1.4 trillion (roughly Rs. 1,16,22,086 crore) worth of assets under its control, Japan's GPIF is recognized as the world's largest pension fund since 2022, according to Spain's investment research firm RankiaPro. The fund's decision to explore Bitcoin comes amid the cryptocurrency's surge in value, with prices fluctuating between $66,000 (roughly Rs. 54 lakh) and $73,000 (roughly Rs. 60.5 lakh).

The GPIF is now considering adapting to the evolving financial landscape by researching alternative investment options over a five-year period. The organization's research program will explore various potential investment tools, including farmland, gold, and Bitcoin, among others.

Traditionally, GPIF has limited its investment options to domestic and international stocks, as well as bonds, aiming to mitigate financial risks and ensure stable returns. However, the fund's interest in Bitcoin reflects the growing demand for digital assets in investment portfolios, reported Crypto.news.

Japan's crypto market has experienced significant growth, with over five million residents estimated to hold cryptocurrencies by the end of 2023.

The supportive stance of the Japanese government, led by Prime Minister Fumio Kishida, towards the crypto sector, further highlights the country's evolving approach to digital assets. In line with this trend, Japanese e-commerce giant Mercari announced plans to accept Bitcoin payments in the near future, signaling a broader acceptance of cryptocurrencies within the country.