In October 2020, a New Zealand retirement fund filed the necessary documents to allow investment in Bitcoin. With the thesis that BTC has become a superior commodity to gold, KiwiSaver chief investment officer James Grigor has brought significant gains to his clients. “If you are happy to invest in gold, you cannot really ignore bitcoin”, said Grigor to Stuff Business magazine, explaining that bitcoin has the same attractive characteristics of gold that investors tend to buy in times of crisis. , presenting gains superior to the majority of the traditional investments. The decision benefited the KiwiSaver Growth Strategy Fund's clients, people over 65 who intend to get a good return on investments to ensure a good retirement.The fund even allocated 5% of the $ 350 million in assets under management in Bitcoin , a decision that was criticized by competing managers in New Zealand, who called the cryptography purely “speculative”.
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But it was KiwiSaver customers who had the best returns with the strong adoption movement that the cryptocurrency is seeing in 2022, with even Tesla accepting Bitcoin as a form of payment for its electric cars. Grigor said the fund would have acquired exposure to BTC when the asset was trading around $ 10,000.
“Our KiwiSaver is built mostly through traditional asset classes, their bonds and shares, and they will always be the asset classes that accumulate over time to give people the best retirement possible. But there will be times when it will not always be a bed of roses. You can still have a positive view of these asset classes, but other opportunities present themselves, ”said Grigor.
Bitcoin's price has risen dramatically as foreign institutional investors have started buying positions for their clients in a process that Grigor called bitcoin's “legitimation”. Pension funds can now invest in bitcoin funds, like those of the American company Galaxy Digital, in which NZ Funds invested KiwiSaver money, he said. Earlier this month, Morgan Stanley became the first major U.S. bank to offer its wealthiest customers access to bitcoin funds, using Galaxy Digital funds, according to Grigor. The company's CIO added that other products from the firm, which manages more than $ 66.5 billion in assets in total, will also allocate some share in Bitcoin.