Bitcoin adoption: Investors add crypto to pension funds

According to Michael Sonnenschein, CEO of Grayscale, investments in cryptocurrency and Bitcoin come and go in retirement funds and endowments.

According to Bloomberg, Bitcoin investments are growing rapidly from a variety of sectors, including hedge funds, other institutions, pensions and other endowments. As Sonnenschein explained:

"We've started to see participation not only from the hedge fund segment, which we've been seeing participation in for a long time, but more recently from other institutions, pensions and endowments. The size of the allocations they are placing is also growing rapidly.

Shades of gray have been aggressively accumulating in Bitcoin for months now, having purchased a significant portion of cryptocurrencies since the middle of last year. The institutional firm now owns roughly 3% of all Bitcoin tokens in circulation. The firm doesn't seem to be about to slow down either, as the fund manager continues to add more Bitcoin to its assets under management.  In its current form, Grayscale holds $23 billion worth of Bitcoin in its Grayscale Bitcoin Trust, while $3.6 billion is in the Ethereum trust.

Pension funds in the Bitcoin market

Following retail traders and institutional investors, pension funds are entering the market to hedge against national currencies and earn interest over time. If Bitcoin and other cryptocurrencies continue the trend they have followed over the past decade, holding assets as cryptocurrencies in a pension fund will be an extremely profitable strategy. That's assuming the market continues to grow over time and doesn't face a crash that lasts longer. If Bitcoin's bullish value is anything to go by at the moment, it looks like adding a token to the investment could prove profitable sooner or later over time. Over the past decade, those who bought Bitcoin as early adopters would have made a whopping 26083% return on that investment.