The largest pension fund on the earth misplaced $164.7 billion within the first quarter of 2020. That is equal to the complete market capitalizatio
The largest pension fund on the earth misplaced $164.7 billion within the first quarter of 2020. That is equal to the complete market capitalization for Bitcoin (BTC).
Bitcoin didn’t do any higher
Japan’s Authorities Pension Funding Fund, or GPIF, decreased in worth by virtually 11% to 150.63 trillion yen or $1.four trillion. This was the fund’s steepest quarterly decline since 2008.
Dow Jones & BTC. Supply: Yahoo Finance.
GPIF was not alone in its poor efficiency, main inventory indexes like Dow Jones posted detrimental numbers. Apparently, Bitcoin’s efficiency was virtually equivalent, the place its value from January 1 to March 31 fell by roughly the identical 11%.
Thus, this isn’t a case the place Bitcoin supporters are capable of champion Bitcoin’s perceived safe-haven standing. Alternatively, had GPIF invested simply 0.1% of its belongings beneath administration or $1.5 billion in Bitcoin, at first of the primary quarter, this may have created excessive purchase stress available on the market. The doubtless final result — an enormous Bitcoin bull run and optimistic returns for the crypto portion of the pension fund’s portfolio.
Small BTC publicity might be helpful
But, this may have been a extremely unlikely state of affairs. Pension funds are naturally a number of the most conservative buyers. Shopping for $1.5 billion price of Bitcoin — round 208,000 BTC — in a short while span would have been an virtually not possible process.
Grayscale’s GBTC fund is at present holding 420,000 BTC.