There is now an observed trend, particularly in Asian nations, when it comes to adopting and investing in crypto.
In recent news, South Korea has joined the train and has now made a significant investment in a major crypto company in the US.
Here are all the details.
According to reports, the National Pension Service (NPS), the largest pension fund in South Korea has just made a significant investment in the US.
The Korean NPS in the third quarter of 2023, according to a filing with the US SEC, has spent a whopping $20 million to buy 282,673 shares of Coinbase.
The NPS bought these shares at about $70 and is reportedly in about 40% profit because, at the time of writing, Coinbase shares have rallied to about $96.92 per share.
This puts the NPS' investment at a valuation of more than $25 million.
The NPS is the third-largest pension fund in the world, with assets of over $800 billion.
This pension service is responsible for managing the retirement savings of millions of South Koreans, and this recent investment in Coinbase shows the growing adoption of crypto among governmental and institutional investors.
So far, the NPS has not been the only pension fund to do something like this in the crypto space.
Back in 2019, Virginia invested about $35 million into VanEck's New Finance Income Fund, which had exposure to crypto-related companies, like Coinbase, Bakkt, and ErisX.
However, the Fairfax County pension funds suffered a setback when Genesis, one of their investments filed for bankruptcy in October 2023.
Genesis was among the creditors of VanEck's fund, and when it collapsed, it triggered a wave of liquidation of the fund's assets.
Despite the risks involved in investing in crypto, the industry continues to attract pension funds, hedge funds, endowments and other major investors.
According to a survey by Fidelity Digital Assets, 36% of institutional investors in the U.S. and Europe own crypto or derivatives.
Fidelity's survey also found that 80% of investors find things like high potential returns, low correlation to other assets, and innovative technology appealing about crypto.
The NPS's investment in Coinbase goes to show the growing trend of institutional crypto investment, and that South Korea, like many other Asian nations is leading the charge when it comes to embracing the crypto sector.
As more pension funds and other institutional investors enter the crypto space, the industry is likely to mature and expand further.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.