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- Bitcoin has attracted Korea Teacher’s Credit Union, as it plans to invest in the asset next year
- Korea Teacher’s Credit Union will not directly invest in the digital asset, rather will gain exposure to ETFs
- The credit union plans to invest in the ETF products after consultations with the domestic asset manager
- The credit union mentioned that the overseas stock accounts will be used for investing in the BTC ETF assets
Bitcoin investment has undoubtedly gone mainstream as the asset began to achieve new highs. Since the beginning of this year, BTC has performed tremendously. Although the asset faced some turbulence over the last few months, recently, Bitcoin has achieved a new high crossing the price level of $66k. Following the scenario several individuals, businesses, and institutions are jumping into the BTC wagon. Simultaneously, the The Korea Teacher’s Credit Union, the fund that manages more than $40 billion worth assets, is also found planning to begin BTC investment from the next year.
No direct investment in Bitcoin
According to a report published by the Korean news outlet, The Korea Economic Daily, it was revealed that the Korea Teacher’s Credit Union plans to invest in Bitcoin. However, the report also revealed that the union is not willing to invest in the flagship cryptocurrency directly. Rather, the union will get exposure to BTC via investment products like exchange traded products (ETFs). Notably, the union has plans to do so after the first Korea-based firm will introduce such a BTC ETF in the first half of 2022. Indeed, the measure will become one of the first examples of a pension fund in the nation.
The decision of the credit union came following the widespread adoption of cryptocurrencies globally.
The credit union will move forward after consultations
South Korea’s first pension fund with more than $40 billion seeks for the ;launch of the first Bitcoin ETF in the nation at any point next year. Notably, there are some well-known cryptocurrency financial instruments available by asset managers like the nation’s Mirae Asset Global Investments. However, the fund plans to invest in the ETF products after consultations with the domestic asset manager.
In the current scenario, the Korea Teacher’s Credit Union has allocated more than 40% of its investment in alternative assets. Such investments include 10% in domestic and 9% in international stocks. According to the Korean news outlet, the overseas stock accounts will be used for investing in the BTC ETF assets.
BTC ETFs are something in hype now
In recent days ProShares became the first firm in the United States that has listed a Bitcoin Futures product on the New York Stock Exchange (NYSE). Notably, the listing turned out to be a hit as the demand for the product roared among investors very quickly. However, more than a dozen of BTC spot product proposals are still pending approval on the US stock exchange.
