New Zealand fund management company – NZ Funds Wealth Management Company – has invested 5% of its Growth KiwiSaver Scheme fund in Bitcoin.
Growth funds are a program that is suitable for investors who are looking for relatively high growth over the long term. The fund invests primarily in growth assets such as stocks, listed infrastructure and listed real estate.
The Growth KiwiSaver Scheme fund, with assets of $ 244 million at the end of December 2020, was launched invest in Bitcoin last October.
Many fund managers from other of the company’s investment plans weren’t happy with the company’s decision, saying that Bitcoin didn’t have multiple use cases and was too volatile at the time.
However, James Grigor, the chief executive officer of NZ Funds’ wealth management firm, said, “If you enjoy investing in gold, you can’t really discount bitcoin.” He compared bitcoin to gold and described bitcoin as a commodity and a good store of value versus fiat -Inflation.
KiwiSaver is a retirement plan from New Zealand Wealth Funds Management. The fund is primarily active in traditional assets, stocks and bonds with $ 244 million in assets under management. Grigor anticipates that Bitcoin will have more in the fund over the next five years and will expand to other investment plans.
The fund had to change its documents in October 2020 – during that time it invested in Bitcoin when the leading crypto asset was trading at around $ 10,000. Since last month the Cryptocurrency has grown to over $ 50,000, which means the KiwiSaver fund made 5x on its investments.
Businesses move to protect wealth
The latest announcement by the KiwiSaver Fund comes at a time when several institutions around the world have announced their Bitcoin commitment to bolster their government bonds. Business intelligence software company MicroStrategy bought over $ 1 billion worth of Bitcoin in 2020. Last month, Tesla electric car maker bought $ 1.5 billion worth of Bitcoin and started accepting it as payment. Other publicly traded companies like Square, Meitu, Mode Global Holdings, Ruffer Investment Company, and others have bought Bitcoin as a treasury reserve asset to protect investors’ wealth from fiat inflation and to maximize long-term value for shareholders.
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