South Korean’s First Pension Fund to Invest in Cryptocurrency ETF

The Korean Teachers’ Credit Union (KTCU), the nation’s first pension fund with $40.2 billion in belongings beneath administration, is planning to put money into a Bitcoin exchange-traded fund (ETF).  In the primary half of 2022, KTCU, one in all South Korea’s main institutional buyers, is contemplating investing in a pure Bitcoin ETF or Bitcoin-linked ETFs.

KTCU is Investing in BTC

KTCU is contemplating investing in quite a lot of Bitcoin ETFs, together with these supplied by Mirae Asset Global Investments, a South Korean asset administration agency. In April 2021, the corporate’s Canadian subsidiary, Horizons ETFs, launched two ETFs that observe the worth of Bitcoin futures.

Along with the Bitcoin-based ETFs, it additionally launched a fund that invests in corporations from the battery, biotechnology, web, and gaming industries, often called the BBIG sectors. The BetaPro Inverse Bitcoin ETF, the primary of its sort within the North American market, is without doubt one of the newly launched cryptocurrency ETFs. It advantages when bitcoin’s worth falls.

The inverse product, in addition to one other crypto ETF known as BetaPro Bitcoin EFT, invests in bitcoin futures traded on the Chicago Mercantile Exchange reasonably than the crypto asset itself.

We plan to put money into the ETF merchandise after consulting with home asset managers, according to a KTCU official. There are a number of well-made cryptocurrency-linked ETF merchandise by asset managers comparable to Korea’s Mirae Asset Global Investments.

The official additionally highlighted Mirae Asset’s subsidiary, Global X ETFs, which utilized for a Bitcoin ETF with the US Securities and Exchange Commission in July. The announcement comes as world pension funds have gotten extra eager about having publicity to cryptocurrencies comparable to Bitcoin and key corporations within the business.

The Houston Firefighters’ Relief and Retirement Fund bought $25 million in Bitcoin and Ether final week (ETH). On Thursday, the Ontario Teachers’ Pension Plan Board introduced that it had participated in a $420 million funding spherical for main crypto change FTX.

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