The world’s largest pension fund posted a first-quarter loss of $165 billion, which is equivalent to the Bitcoin’s entire market capitalization.
Bitcoin didn’t do any better
Japan’s Government Pension Investment Fund, or GPIF, decreased in value by almost 11% to 150.63 trillion yen or $1.4 trillion. This was the fund’s steepest quarterly decline since 2008.
Dow Jones & BTC. Source: Yahoo Finance.
GPIF was not alone in its poor performance, major stock indexes like Dow Jones posted negative numbers. Interestingly, Bitcoin’s performance was almost identical, where its price from January 1 to March 31 fell by approximately the same 11%.
Thus, this is not a case where Bitcoin supporters are able to champion Bitcoin’s perceived safe-haven status. On the other hand, had GPIF invested just 0.1% of its assets under management or $1.5 billion in Bitcoin, in the beginning of the first quarter, this would have created extreme buy pressure on the market. The likely outcome — a massive Bitcoin bull run and positive returns for the crypto portion of the pension fund’s portfolio.
Small BTC exposure could be beneficial
Yet, this would have been a highly unlikely scenario. Pension funds are naturally some of the most conservative investors. Buying $1.5 billion worth of Bitcoin — around 208,000 BTC — in a short time span would have been an almost impossible task.
Grayscale’s GBTC fund is currently holding 420,000 BTC.