According to the statement made by KiwiSaver Chief Investment Officer James Grigor, the company recently allocated 5% of its money to Bitcoin investment.
While few investors from KiwiSaver are dissatisfied with the decision, Grigor believes that Bitcoin has become a commodity similar to gold and has many important features such as working as a store of value against fiat hyperinflation.
“If you’re happy to invest in gold, you’d think the same for Bitcoin,” said the executive, speaking to the New Zealand news agency Stuff. said.
Fund is on the agenda with Bitcoin investment
KiwiSaver is a retirement plan from New Zealand Wealth Funds Management. The fund deals mostly with traditional assets, bonds and stocks and manages $ 350 million. Grigor expects Bitcoin to get more features within the fund and spread to other investment plans.
The fund had to change its documents in October to invest in Bitcoin when trading at $ 10,000. Considering that BTC peaked at just over $ 60,000 on March 13, KiwiSaver earned 6 times its investment.
Traditional investors remain skeptical
Despite the institutional interest of investment giants such as Goldman Sachs and Morgan Stanley, fund managers from other KiwiSaver programs stated that Bitcoin does not have many uses and is “very volatile at this stage.”
Grigor believes Bitcoin offers a new opportunity for investors. He stated that regardless of the price of the cryptocurrency in the future, the fund will move to the next potential asset class.
“Our KiwiSaver is mostly created through traditional asset classes, your bonds and shares, and there will always be asset classes that converge over time to give people the best retirement they can get. However, there will always be times when it will not always be straight. You can still have a positive view of these asset classes, but other opportunities show up.
Accordingly, the NZ Fund invested in Bitcoin in October, when the institutional bull run for BTC began:
“We bought Bitcoin for $ 10,000 in October. It was $ 62,000 over the weekend and it’s back to $ 55,000 today. ”
The road to $ 100,000
While other KiwiSaver fund managers say Bitcoin is “too speculative,” an analyst at Bloomberg believes Bitcoin could hit $ 400,000 levels by the end of 2021.
McGlone believes Bitcoin has just transitioned from a speculative project to a global reserve asset. Most investors can flock to a potential BTC ETF or add Bitcoin to their portfolio to protect themselves against future hyperinflation. As reported, the Federal Reserve is preparing to issue $ 3 trillion plus $ 1.9 trillion in incentive controls to “heal” the economy from the COVID-19 outbreak.