South Korea’s pension fund eyes direct Bitcoin investment

South Korea's National Pension Service (NPS) is considering direct Bitcoin investments, backed by political leaders and recent legislative changes favoring cryptocurrency

South Korea's National Pension Service (NPS) is considering direct Bitcoin investments, backed by political leaders and recent legislative changes favoring cryptocurrency.

South Korea's National Pension Service (NPS), managing over $800 billion in assets, is exploring direct investments in Bitcoin. This shift follows recent legislation permitting national pension funds to invest in cryptocurrencies. Presidential candidates from both major parties have expressed support for integrating digital assets into public investment strategies. Democratic Party leader Lee Jae-myung has pledged to approve spot Bitcoin ETFs if elected, aiming to create a secure investment environment for younger generations.

Currently, the NPS holds indirect crypto exposure through significant investments in companies like MicroStrategy and Coinbase. In 2024, it purchased $34 million worth of MicroStrategy shares, a firm known for its substantial Bitcoin holdings. Additionally, the NPS invested over $45 million in Coinbase shares, reflecting a growing institutional interest in the crypto sector.

The move towards direct Bitcoin investment is also influenced by the increasing interest in cryptocurrencies among South Koreans, including older demographics. A recent survey indicated that 11% of crypto investors in South Korea are in their 60s, surpassing the 8% in their 50s, highlighting a broader acceptance of digital assets across age groups.

While the NPS has not yet made direct Bitcoin purchases, the combination of legislative support, political backing, and shifting investor demographics suggests a significant step towards integrating cryptocurrencies into South Korea's national pension investment portfolio.