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Japan’s Largest Pension Fund Eyes Bitcoin Amid Crypto Market Surge

Japan’s Government Pension Investment Fund (GPIF), the largest pension fund in the country with assets estimated at $1.4 trillion, is considering a significant shift in its investment strategy. Amidst a booming crypto market and Bitcoin’s soaring price, GPIF is contemplating diversifying its portfolio away from traditional assets.

The news comes as Bitcoin continues its bullish run, with prices fluctuating between $66,000 and $73,000. GPIF’s potential interest in Bitcoin marks a departure from its previous focus on traditional investment options such as stocks and bonds, aimed at minimizing financial risks and ensuring stable returns.

According to reports from Spain’s investment research firm RankiaPro, GPIF has held the title of the world’s largest pension fund since 2022. However, recognizing the evolving financial landscape, GPIF is embarking on a five-year research program to explore new investment avenues.

Among the assets under consideration for inclusion in its portfolio, GPIF has singled out Bitcoin, along with farmland and gold. The move underscores the growing interest in cryptocurrencies among institutional investors and reflects the surging demand for digital assets in Japan.

The Japanese government, led by Prime Minister Fumio Kishida, has adopted a supportive stance towards the crypto sector, signaling a positive regulatory environment. This sentiment is mirrored by developments such as Mercari, a major e-commerce platform, announcing plans to accept Bitcoin payments in the near future.

With over five million Japanese residents estimated to hold cryptocurrencies by the end of 2023, Japan’s crypto market is witnessing significant growth. GPIF’s potential entry into the Bitcoin arena signals a seismic shift in the traditional investment landscape, potentially opening the door for further institutional adoption of cryptocurrencies in Japan and beyond.

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