South Korea’s NPS Rakes in 40% Profit from COIN Investment

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South Korea’s pension fund has reportedly made a 40% return on investment (ROI) on their Coinbase stocks purchase.

$20 Million Invested in Third Quarter

South Korea’s National Pension Service (NPS) is currently smiling to the bank after it locked in a 40% profit from its investment in crypto-native centralized exchange Coinbase.

According to reports from local news outlet News1, the South Korean pension body purchased 282,673 shares of Coinbase’s COIN stock at an average price of $70.5, spending about $19.92 million or 26 million Korean Won in the process.

NPS reportedly bought the Nasdaq-listed exchange shares in the third quarter of 2023.

Following a 4% increase in the COIN price in the quarter and 177% in the past year, the NPS has pocketed about $27.74 million based on the exchange’s performance in the stated period.

However, this initiative has not gone down well with key members of the Asian nation’s National Assembly. According to them, crypto assets don’t inherently generate revenue unless sold to another investor at a higher price.

This step by the NPS is its first exploration of committing its pension funds toward investments in digital assets.

Investors ‘Overwhelmingly’ In Favor of Crypto Investment Vehicles

Due to their notable volatility, cryptocurrencies are commonly perceived as high-risk investments, with their prices often experiencing rapid and substantial fluctuations within short timeframes.

However, tides and sentiments are rapidly changing. According to a survey carried out by renowned pension magazine Pension Age, about 90% of participants are “overwhelmingly” in
favor of adding crypto assets to their pension plan.

A further 95% consider digital assets an investment diversification opportunity alongside traditional options like fixed income, cash, equities, and commodities.

Moving on to the professional scene, 90% of surveyed participants noted that they or their clients are considering adding digital assets to their portfolios.

The research also revealed that 82% of surveyed pension funds were positive around digital assets, especially with Bitcoin and Ethereum in the past year. A further 51% of interviewed pension funds stated that Bitcoin and Ethereum provided an avenue for long-lasting investment opportunities.

While global perceptions are currently shifting, the applause all lies on the doorstep of the foremost crypto asset, Bitcoin.

In recent months, several established businesses and asset management firms have been actively seeking ways to attract mainstream investors to the crypto asset scene.

The ongoing exploration of a spot Bitcoin exchange-traded fund (ETF) and other related crypto assets appears to be the solution.

Key players such as BlackRock, Valkyrie, Fidelity, Grayscale, WisdomTree, Ark Invest, and others have submitted applications for a spot Bitcoin ETF to the US Securities and Exchange Commission (SEC).

While concerns about market manipulation and fraud have been cited by the SEC, led by Gary Gensler, there is a growing belief that approval for a Bitcoin spot ETF is imminent.

Making this claim in his official X (formerly Twitter) handle, FOX Business’ Charles Gasparino stated that BlackRock is increasingly confident about receiving SEC approval in the coming weeks,

According to Gasparino, a Bitcoin spot ETF approval is slated for January 2024 and is 90% certain.

Grayscale’s Chief Executive Officer (CEO) Michael Sonnenshein has also hinted at a possible approval.

Posting on X, Sonnenshein stated that the ten-year crypto asset “dress rehearsal” is over, and the asset management firm is prepared for the main event.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.