According to the latest stock report submitted by the National Pension Service (NPS) of South Korea to the U.S. Securities and Exchange Commission (SEC), the pension fund made a strategic move by investing approximately $20 million in Coinbase (COIN) shares in the third quarter. The retirement fund purchased 282,673 COIN shares at an average price of $70.5, making a total investment of $19.92 million and subsequently witnessing a 40% profit. This lucrative investment, in line with the fund’s entry into the digital assets sector, signifies a significant change in its U.S. stock portfolio.
Crypto Exchange Investment Resulted in 40% Profit
The strategic purchase of COIN shares by NPS at an average price of $70.5 has proven to be a wise move, resulting in a 40% profit in the third quarter alone. With a 4% increase in COIN shares during the third quarter and an impressive 177% rise throughout the year, the retirement fund’s entry into the crypto exchange market has yielded significant returns.
This move also marked a historic moment for NPS as it added a digital asset company to its U.S. stock portfolio for the first time. Despite criticism from the South Korean National Assembly regarding businesses venturing into crypto assets, the retirement fund’s success in the crypto market highlights the evolving landscape of investment strategies.
Integration of Digital Assets: Controversial Yet Profitable Decision
NPS’s decision to embrace a crypto asset company has faced strong criticism from some circles emphasizing concerns that cryptocurrencies do not generate cash like traditional assets. Critics argue that the profitability of digital assets relies on selling them to subsequent investors at higher prices. However, a Pensions Age survey conducted earlier this year highlighted that pension plans see crypto assets as an important part of the investment environment and offer diversification opportunities for portfolios, aligning this move with broader industry awareness.
The inclusion of the crypto sector in the investment portfolio of South Korea’s National Pension Service is noteworthy. This move can serve as an example for other companies and can also be interpreted as a global paradigm shift due to its strategic advantages.
