Japan’s $1.4T Pension Funds Wants a Taste of Bitcoin (BTC) Pie

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Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund with assets totaling $1.4 trillion, is poised to venture into Bitcoin (BTC), among other illiquid assets. According to an announcement, GPIF requests that basic information on illiquid assets, such as gold, Bitcoin, farmland, and forest, be submitted on or before April 19th, 2024. 

Japan Pension Funds to Explore Bitcoin Investment

This move marks a significant stride towards mainstream acceptance of cryptocurrencies within institutional investment circles. Amidst the growing adoption of cryptocurrencies globally, the GPIF’s decision to explore Bitcoin investment, although yet to be confirmed, underscores the increasing recognition of digital assets as a legitimate asset class. 

With Bitcoin’s meteoric rise in value and its establishment as a store of value comparable to gold, institutional investors are beginning to acknowledge its potential as a hedge against inflation and geopolitical uncertainties.

Furthermore, Bitcoin’s growing adoption as a medium of exchange and store of value by institutions, corporations, and even governments lends credibility to its long-term viability as an investable asset. This institutional validation could further propel Bitcoin’s price appreciation and cement its position in the global financial landscape.

Japan Welcomes a new Stage for Crypto and Web3

Recall that last year, Japan’s Prime Minister, Fumio Kishida, approved a Web3 white paper that included a crypto visa proposal to attract talented professionals and expand the country’s startup visa program. Like many other countries, Japan has been exploring the potential of Web3 and the various blockchain-based applications built on top of it.

The country has been active in the blockchain space for several years, even developing its cryptocurrency exchange regulations to help the industry grow. Also, the country revealed a plan to establish a government advisory council of professionals in connection with the issuance of its Central Bank Digital Currency (CBDC), the digital yen.

Japan LPs to Invest in Web3 Startups

Markedly, with Web3, Japan can open up new avenues for innovation, such as decentralized finance (DeFi) and Non-Fungible Tokens (NFTs). These new technologies have the potential to transform industries as diverse as finance, real estate, and art.

Just last month, Japan’s Ministry of Economy, Trade and Industry (METI) embarked on a strategy to foster the development of new businesses and industries by encouraging heightened domestic investments from limited partnership (LP) firms, particularly targeting the growing Web3 ecosystem.

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