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South Korea’s Pension Fund KTCU to Invest in Bitcoin ETF

The Korean Teachers’ Credit Union (KTCU), a public pension fund in South Korea, is apparently trying to obtain exposure to Bitcoin (BTC) via the purchase of a cryptocurrency exchange-traded fund (ETF). A pure Bitcoin ETF or Bitcoin-linked ETFs are being considered by KTCU, one of South Korea’s top institutional investors, for investment in the first half of 2022, according to a report published Monday by the local news outlet The Korea Economic Daily.

As reported by the Korea Times, KTCU is contemplating investing in a number of Bitcoin ETF products, including those offered by the South Korean asset management business Mirae Asset Global Investments. Horizons ETFs, a Canadian affiliate of the business, introduced two exchange-traded funds (ETFs) following the value of Bitcoin futures in April 2021.

Following consultation with domestic asset managers, an executive at KTCU reportedly stated that “there are some well-made cryptocurrency-linked ETF products by asset managers such as Korea’s Mirae Asset Global Investments,” and that “we plan to invest in the ETF products after consultation with domestic asset managers.”

Mirae Asset subsidiary Global X ETFs, which filed a Bitcoin exchange-traded fund with the United States Securities and Exchange Commission in July, was also mentioned by the official as a possible investment in a Bitcoin ETF by Mirae Asset. South Korea’s KTCU is the second-largest institutional investor in the country, according to the study, with $40.2 billion in assets under management.

Alternative assets account for 40% of the pension fund’s investments, with domestic equities accounting for 10% and overseas stocks accounting for 9% of total investments. KTCU has not yet determined the magnitude and other specifics of its proposed Bitcoin ETF investment, nor has it determined the timing of the transaction.

The announcement comes at a time when global pension funds are becoming more interested in having exposure to cryptocurrencies such as Bitcoin as well as significant corporations in the sector. According to reports, the Houston Firefighters’ Relief and Retirement Fund acquired $25 million worth of Bitcoin and Ethereum last week (ETH). Canada’s Ontario Teachers’ Pension Plan Board took part in a $420 million investment round for major cryptocurrency exchange FTX, according to a press release issued by the company on Thursday.

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