South Korea National Pension Fund (NPS), Bitcoin $63,953 He announced that he is investing in cryptocurrency-related companies such as Coinbase and MicroStrategy, rather than purchasing other cryptocurrencies directly. NPS stated that the purpose of investing in companies is not to invest in cryptocurrencies, but that these investments are made according to the benchmark index. This statement came in response to public news that the fund made indirect investments in cryptocurrencies.
Details of NPS’ Coinbase and MicroStrategy Investments
NPS, Coinbase and MicroStrategy He emphasized that investments in cryptocurrency-related companies such as are made within the framework of external management decisions and the Morgan Stanley Capital International (MSCI) index they follow. For example, the National Pension Fund, coinbaseIt owns 28 million shares as of March 2023, and the market value of these shares is 1009 billion South Korean won. During the same period, 200 shares were purchased from MicroStrategy and the total value of these shares was announced as 4 billion South Korean won.
MicroStrategy currently operates worldwide Bitcoin supplyWhile it is known as a major player, holding 1.2 percent of the market, its chairman Michael Saylor is known for his strong support for the largest cryptocurrency.
The Fund Rejected That Claim: Investment Is Index-Based, Not Cryptocurrency-Targeted
While comments were made in the market that NPS’s purchase of Coinbase and MicroStrategy shares was seen as an indirect investment, especially in Bitcoin, the fund rejected these claims. NPS, share purchases cryptocurrencyHe reiterated that he does not aim to invest in companies and that investments are made in companies only in line with indices.
The Fund also stated that the Fund Management Committee will take a decision to consider restricting investments in cryptocurrency-related companies. If such a restriction decision is made, the fund will remove these companies from its indices and will not invest in these companies in the future.
Finally, it was emphasized that the fund will continue to follow the principles of profitability and reliability in its management policies. South Korean member of parliament Baek Jong-heonstated that the risks related to cryptocurrencies should be carefully evaluated in fund management and participated in the discussions regarding share purchases and crypto connection.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
