South Korea’s National Pension Service Dives Into Crypto With $20M Coinbase Investment

Regulatory filings with the U.S. Securities and Exchange Commission (SEC) uncover that the National Pension Service of South Korea acquired 282,673 Coinbase Global shares successful 2023’s 3rd quarter. This transaction, valued astatine astir $20 million, marks the pension fund’s inaugural foray into the cryptocurrency sector.

World’s Third Largest Pension Fund Purchases 282,673 Shares of Coinbase Global

The National Pension Service, founded successful 1988, operates arsenic South Korea’s nationalist pension money and ranks arsenic the world’s third-largest. Overseen by the National Pension Service Investment Management (NPSIM), the strategy mandates enrollment for some Korean citizens and overseas residents successful Korea. A caller SEC filing disclosed that successful the 3rd quarter, the NPS invested successful Coinbase Global, securing 282,673 shares astatine a outgo of $20 million.

To date, the NPS’s concern successful Coinbase (listed connected Nasdaq arsenic COIN) has appreciated by 40%, having bought shares astatine an mean of $70.5 each. Currently, COIN’s shares are trading astatine $98.15 each, reflecting a important 26% summation implicit the past month. It appears that the NPSIM opted for COIN shares arsenic a comparatively lower-risk alternate to nonstop crypto holdings, aligning with a planetary inclination wherever galore entities put successful stocks of publically traded firms wrong the burgeoning sector.

The NPS reportedly manages assets worthy astir $755 billion. Its performance successful 2022 was varied, enduring a antagonistic accumulated instrumentality of -79.6 trillion won ($60.17 billion), starring to an annualized instrumentality of -8.22%. Conversely, this twelvemonth has been more favorable, with a affirmative instrumentality of 95.2 trillion won ($71.96 billion) frankincense far. Following the erstwhile year’s downturn, the fund’s caller pivot to crypto assemblage investments mightiness beryllium an effort to counterbalance the losses incurred past year.

What bash you deliberation astir the NPS investing $20 cardinal successful Coinbase shares? Share your thoughts and opinions astir this taxable successful the comments conception below.