South Korea’s Pension Enters Crypto With Bet on Coinbase Shares

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According to South Korea National Pension Service’s latest holdings report, the pension fund acquired 282,673 Coinbase shares (COIN) valued at approximately $19.9 million or 26 billion Korean won.

The report filed with the United States Securities and Exchange Commission (SEC) stated that NPS acquired the shares in the third quarter of 2023 at an average price of $70.5.

NPS Acquires Crypto-related Security

Before now, NPS, with over $755 billion in Assets Under Management (AUM), had never included any crypto-related security as part of its portfolio. Hence, this marks the first time that such an investment is recorded for the leading pension fund. South Korean news outlet News1 explained that the NPS has a policy against making direct investments in cryptocurrencies

However, the latest acquisition suggests that there may have been an adjustment to this policy. Plus, in 2021, the funds had hinted at the possibility of investing in crypto exchanges. 

Coinbase Shares Sees 192.1% Price Surge

The recorded stock growth for Coinbase confirms that South Korea’s NPS acquisition was a good “buy.”

On Wednesday, COIN closed up 6.58% on the stock market Nasdaq at $98.15 indicating a 192.1% surge from $33.6 at the beginning of this year. Markedly, the shares of the publicly listed company have seen a 4% price growth in Q3, 2023 and almost 177% in the last eleven months.

Considering the average price of the shares at the time NPS made its acquisition, the pension fund made a 40% profit on its COIN investment. Based on the shares value by the close of Wednesday, the NPS COIN shares are currently valued at $27.74 million.

ARK Invest on a COIN Purchasing Binge

Many other companies who invested in COIN shares before this time, must have recorded significant profits amid the price surge.

Cathie Wood’s ARK Invest acquired quite a number of Coinbase shares in this year alone after trying to dump the holding in 2022. In February, the investment asset management firm bought 63,585 COIN across two funds valued at $3.9 million at the time.

ARK Invest purchased an additional 168,869 Coinbase shares in May at $8.5 million. Cumulatively, Cathie Wood’s ARK Invest has over 353,000 COIN shares in its investment portfolio.

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