GPIF Eyes 5% Alternative Allocation, Including Bitcoin

The Government Pension Investment Fund (GPIF) in Japan is looking to increase its allocation of alternative assets, including Bitcoin, as part of a strategy to seek excess returns. The fund currently has only 1.7% of its holdings invested in alternatives, but aims to reach a 5% ceiling.

The GPIF has been conducting research into digital assets for six years and is now considering how to incorporate them into its portfolio. This includes studying the use of Bitcoin by overseas pension funds, as well as potential arbitrage strategies.

The fund's executive director, Aiyu Kiguchi, cited Bitcoin's limited correlation with the dollar index as a reason for this research. The GPIF is also exploring ways to manage risk through its exposure to digital assets.