Third largest pension fund globally invests $80M in MicroStrategy and Coinbase News ▸ South Korea · US ▸ Bitcoin ▸ Crypto
Third largest pension fund globally invests $80M in MicroStrategy and Coinbase
A long leveraged MicroStrategy ETF has been launched in the US, attracting major investors' interest.
2 min read
Updated: Aug. 16, 2024 at 2:38 pm UTC
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South Korea’s National Pension Service (NPS) holds more than $80 million worth of MicroStrategy and Coinbase shares, according to a new filing with the US Securities and Exchange Commission (SEC).
The Aug. 13 filing revealed that the NPS purchased 24,500 shares of MicroStrategy (MSTR) for about $33.75 million during the second quarter ending June 30. The fund also holds over 229,807 shares of Coinbase, valued at more than $51 million.
This marks a significant increase from last year when NPS only held Coinbase shares. At that time, the fund had over 280,000 Coinbase shares worth approximately $20 million, yielding a 40% profit on its investment.
Market observers pointed out that the fund’s choice of investing in MicroStrategy is also prescient, considering the Michael Saylor-led company is the largest Bitcoin holding company globally, with more than 220,000 BTC in its reserves.
Meanwhile, significant funds like NPS’s growing stakes in crypto-related companies reflect the increasing acceptance of the crypto sector by traditional investment institutions. Earlier this week, CryptoSlate reported that Norway’s Government Pension Fund indirectly holds more than 2,400 BTC through investments in Bitcoin-focused firms such as Marathon Digital and MicroStrategy.
NPS is the third-largest investment fund globally, managing assets worth $777 billion. It follows Japan’s Government Pension Investment Fund (GPIF) and Norway’s Government Pension Fund, which manage $1.5 trillion and $1.7 trillion, respectively.
Leveraged MicroStrategy ETF
NPS’s increased exposure to the industry comes as the US Securities and Exchange Commission (SEC) approves the leveraged long ETF for MicroStrategy (MSTX), which began trading on US national exchanges on Aug. 15.
The fund, offered by Defiance ETFs, is the first single-stock leveraged long ETF, providing investors with 175% daily targeted exposure to MicroStrategy without needing a margin account.
Defiance ETFs’ CEO, Sylvia Jablonski, stated that this ETF allows investors to maximize their exposure to Bitcoin.
He said:
“Given MicroStrategy’s inherent higher beta compared to Bitcoin, MSTX offers a unique opportunity for investors to maximize their leverage exposure to the Bitcoin market within an ETF wrapper.”
The fund has attracted significant interest. Bloomberg’s ETF analyst, Eric Balchunas, noted that it saw $22 million in trading volume on its first day, potentially setting a record for a leveraged ETF.
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
MicroStrategy
MicroStrategy (Nasdaq: MSTR) is a worldwide leader in enterprise analytics and mobility software.
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Michael Saylor is the Executive Chairman, founder, and principal shareholder of MicroStrategy.
Eric Balchunas is an American author, ETF analyst, and Senior ETF Analyst at Bloomberg Intelligence.
