- The South Korea National Pension Scheme recently announced its acquisition of MicroStrategy (MSTR) stocks.
- This follows its previous investment in Coinbase, which has seen significant gains.
- A noteworthy development is the approval of a leveraged MicroStrategy ETF by the SEC.
Discover how South Korea’s National Pension Scheme is strategically investing in the crypto sector through key stock acquisitions and ETF approvals.
South Korea NPS Invests in MicroStrategy
Recently, South Korea’s National Pension Scheme (NPS) revealed its purchase of 245,000 MicroStrategy (MSTR) stocks, as per its latest 13F filing with the U.S. Securities and Exchange Commission. The acquisition is valued at approximately 46 billion won, equivalent to $33.7 million, contributing to 0.04% of NPS’s direct US stock investment portfolio. Notably, MicroStrategy’s stock has appreciated by 92% year-to-date, with significant gains observed in the first quarter.
Significant Gains from Previous Investments
Last year, NPS made headlines with its substantial investment in Coinbase stocks, acquiring 282,673 shares at $78 each. This strategic move has paid off, with the share price surging to $222, marking a threefold increase. This investment success underlines NPS’s adeptness in identifying lucrative opportunities within the crypto sector.
SEC Approves Leveraged MicroStrategy ETF
In a notable development for investors, the U.S. SEC has approved a leveraged MicroStrategy ETF, issued by Defiance, which offers investors 1.75x exposure to MicroStrategy’s daily stock returns. This ETF provides a regulated avenue for those looking to gain amplified exposure to Bitcoin through MicroStrategy, the largest corporate Bitcoin holder.
Expanding State Investment in Bitcoin ETFs
State investment boards in the U.S. have also been increasing their exposure to Bitcoin through spot Bitcoin ETFs. For instance, the State of Wisconsin Investment Board (SWIB) has been actively purchasing Bitcoin ETFs, including BlackRock’s Bitcoin ETF. Similarly, the State of Michigan Retirement System recently disclosed a $6.6 million investment in an ARK 21Shares Bitcoin ETF (ARKB). These moves reflect a growing trend among institutional investors seeking regulated Bitcoin exposure.
Conclusion
The strategic investments by South Korea’s NPS and various U.S. state investment boards underscore a growing institutional interest in cryptocurrencies and related financial instruments. By diversifying their investment portfolios through regulated avenues such as ETFs and public crypto stocks, these entities are positioning themselves to capitalize on the evolving digital asset landscape. Readers should stay informed on such developments, as they signify broader financial trends and opportunities in the cryptocurrency sector.
