Retirement Funds Starting to Buy Bitcoins Nasdaq Say - page 3.

bitmover

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Quote from: dkbit98 on March 27, 2021, 06:03:16 AM

This is good news but NZ was not the first pension fund that invested in Bitcoin and Norwegian Government Pension Fund, better known as Oil Fund, invested in Michael Saylor's MicroStrategy back in 2020.
I would call this a smart investment and I am sure other countries will follow sooner or later, and even few percent investment will make a huge difference for Bitcoin.

Pension funds hold a lot of money. The impact in bitcoin price could be huge.

However, regulations and laws do not allow them to buy bitcoin directly (at least in most countries). But I believe some of them could buy a bitcoin ETF, or a Bitcoin fund.

This is why ETFs are important for institutional investors, mostly due to regulations.

cryptomaniac_xxx

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Quote from: larus on March 27, 2021, 05:21:17 AM

I always thought that btc is too risky for such kind of funds

BTC has always been risky, no matter what, it's how they mitigate the risk that's it. As as you can see I would say that the investment was just a blip on their billion dollar retirement fund. Yes, it's a scary to think about retirements funds being invested on volatile asset, but they are more willing to take that risk. And pretty sure they have studied it, and we might see another first world country following what NZ and Norwegian government has done.

dkbit98

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This is good news but NZ was not the first pension fund that invested in Bitcoin and Norwegian Government Pension Fund, better known as Oil Fund, invested in Michael Saylor's MicroStrategy back in 2020.
I would call this a smart investment and I am sure other countries will follow sooner or later, and even few percent investment will make a huge difference for Bitcoin.

Check out this Forbes article from 2019 when Bitcoin was near $4000 when even crypto sceptic Peter Tchir said that pension funds purchasing Bitcoin would push prices much higher, and that actually happened:
https://www.forbes.com/sites/petertchir/2019/02/23/pension-funds-investing-in-crypto-is-a-big-deal/

larus

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I always thought that btc is too risky for such kind of funds

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Quote from: dothebeats on March 26, 2021, 03:57:03 PM

This is awesome and scary at the same time. A lot of huge companies are already trying to get a piece of the pie on large increments. Should there ever be a huge crash, we all know that these entities aren't as die-hard as most of us here, and would surely cut losses that'll send bitcoin into an even deeper pit.

For me it's not scary. Contrary to what you say, this type of investment funds are not going to sell Bitcoin simply because there is a moment of panic in the market, unlike what retail investors do.

To me this is good news and what I believe is that there is going to be a day in a few years when most investors in the stock market are going to be exposed in some way or another to bitcoin, either because they own a fund or stocks that have bought Bitcoin or because the companies owned allow the purchase of Bitcoin through them as happens with Paypal. This is along the lines of normalization and mass adption and is nothing but good.

Market crashes will always happen and it is one thing we cannot avoid.

Lorence.xD

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Quote from: dothebeats on March 26, 2021, 03:57:03 PM

This is awesome and scary at the same time. A lot of huge companies are already trying to get a piece of the pie on large increments. Should there ever be a huge crash, we all know that these entities aren't as die-hard as most of us here, and would surely cut losses that'll send bitcoin into an even deeper pit.

Perhaps this is one of the chapters wherein bitcoin is really getting big and companies can no longer ignore bitcoin, and this is also that chapter wherein bitcoin is very fragile IMO.

Exactly, with bitcoin not having been tested yet if it can survive for a hundred years, it will definitely scare someone but you are also right that it is awesome because this means that we can test bitcoin and its capabilities to be used as a retirement fund. We can't do much about this but to hope for the best and continue hodling bitcoin until we are satisfied with the prices.

Jating

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Quote from: nikolastech on March 26, 2021, 03:27:12 PM

New Zealand retirement fund reportedly allocates 5% to Bitcoin
https://www.nasdaq.com/articles/new-zealand-fund-manager-puts-5-of-retirement-plans-assets-into-bitcoin%3A-report-2021-03-26

We all know how much money retirement funds have, so super good they starting buying, others will follow

Big gamble on them, but they probably play it safe by just allocating 5% of it to bitcoin. Otherwise, if we see the price suddenly goes down, we don't know if the people behind are going to hold on it or just sold because they panic.

Anyhow, this is welcoming news for bitcoin though, good exposure to say the least. And probably others might say that this could be considered as getting closer to mass adoption.

dothebeats

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This is awesome and scary at the same time. A lot of huge companies are already trying to get a piece of the pie on large increments. Should there ever be a huge crash, we all know that these entities aren't as die-hard as most of us here, and would surely cut losses that'll send bitcoin into an even deeper pit.

Perhaps this is one of the chapters wherein bitcoin is really getting big and companies can no longer ignore bitcoin, and this is also that chapter wherein bitcoin is very fragile IMO.

nikolastech

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New Zealand retirement fund reportedly allocates 5% to Bitcoin
https://www.nasdaq.com/articles/new-zealand-fund-manager-puts-5-of-retirement-plans-assets-into-bitcoin%3A-report-2021-03-26

We all know how much money retirement funds have, so super good they starting buying, others will follow

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