The Government Pension Investment Fund (GPIF) of Japan, recognized as the world's largest pension fund, is contemplating the inclusion of Bitcoin as a tool for diversification.

On March 19, GPIF unveiled plans to develop new long-term investment strategies to address significant economic, societal changes, and the swift pace of technological advancements.

To tackle these evolving challenges, GPIF has initiated a five-year research agenda aimed at uncovering innovative investment diversification methods, with a focus on sustainability and effective risk management.

As part of this initiative, GPIF has sought information on a range of potential diversification instruments, including those it currently deems "illiquid" and outside its portfolio.

These assets encompass cryptocurrencies such as Bitcoin, along with precious metals and other investment options, as per the fund's statement.

The recent announcement by GPIF serves as a request for information and does not imply a definitive plan to incorporate new assets like Bitcoin into its portfolio.

The decision to undertake further research will be based on the data gathered.

When Cointelegraph reached out to GPIF for comments on its potential engagement with Bitcoin, a response was pending at the time this information was published.

Founded in 2006 by the Japanese government, GPIF's investment strategy predominantly targets core infrastructure funds that support vital socio-economic activities.

The fund currently diversifies its investments across traditional asset classes such as domestic and international stocks and bonds, as well as alternative investments including infrastructure and real estate.

In its 2022 annual report, GPIF emphasized diversification as its chief investment approach, asserting:

“Our primary investment strategy is diversification by asset class, region, and timeframe.

While market prices may fluctuate in the short term, GPIF will take full advantage of our long-term investment horizon to achieve investment returns in a more stable and efficient manner [...]”

As of December 2023, GPIF's assets under management were reported at 225 trillion Japanese yen ($1.54 trillion), positioning it as the premier pension fund globally.

Although GPIF is in the preliminary stages of considering Bitcoin for its investment portfolio, various global pension funds have already embarked on integrating Bitcoin-related assets.

For instance, in November 2023, the National Pension Service of South Korea disclosed its acquisition of more than 280,000 shares in the United States-based Coinbase.

Sources:

https://cointelegraph.com/news/japan-gpif-state-pension-fund-bitcoin

https://www.gpif.go.jp/info/20240319_RFI_J.pdf

https://www.gpif.go.jp/en/performance/annual_report_fiscal_year_2022.pdf

https://www.nasdaq.com/articles/japans-gpif-posts-%2439-bln-investment-return-in-q3-on-falling-long-term-yields