World’s Largest Pension Fund Lost the Equivalent of Bitcoin’s Entire Market Cap in Just Three Months

World’s Largest Pension Fund Misplaced the Equal of Bitcoin’s Total Market Cap in Simply Three Months

The largest pension fund on the earth misplaced $164.7 billion within the first quarter of 2020. That is equal to all the market capitalization for Bitcoin (BTC).

Bitcoin didn’t do any higher

Japan’s Authorities Pension Funding Fund, or GPIF, decreased in worth by nearly 11% to 150.63 trillion yen or $1.four trillion. This was the fund’s steepest quarterly decline since 2008. 

Dow Jones & BTC. Supply: Yahoo Finance.

GPIF was not alone in its poor efficiency, main inventory indexes like Dow Jones posted detrimental numbers. Apparently, Bitcoin’s efficiency was nearly an identical, the place its value from January 1 to March 31 fell by roughly the identical 11%.

Thus, this isn’t a case the place Bitcoin supporters are capable of champion Bitcoin’s perceived safe-haven standing. Alternatively, had GPIF invested simply 0.1% of its property underneath administration or $1.5 billion in Bitcoin, to start with of the primary quarter, this may have created excessive purchase stress in the marketplace.  The seemingly consequence — an enormous Bitcoin bull run and optimistic returns for the crypto portion of the pension fund’s portfolio. 

Small BTC publicity could possibly be helpful

But, this may have been a extremely unlikely situation. Pension funds are naturally a number of the most conservative traders. Shopping for $1.5 billion value of Bitcoin — round 208,000 BTC — in a short while span would have been an nearly unimaginable activity.

Grayscale’s GBTC fund is at present holding 386,659 BTC.