In 2025, the cryptocurrency market experiences a powerful bull rally: Bitcoin has surpassed the $100,000 mark, and the total market capitalization has exceeded $3 trillion. Investors are filled with enthusiasm, but pension funds, on the contrary, are actively shedding digital assets, preferring stability over speculative profits.
Despite the high returns — the average annual profitability of Bitcoin over the last decade was 630% — pension funds are wary of volatility. In Brazil, the National Monetary Council has banned large pension funds from investing in cryptocurrencies due to excessive risks. In the USA, the organization Better Markets published a report warning against "risky gambling" for state pension funds, where dozens of states are considering bans. Canadian CPP Investments, which manages assets of $400 billion, has completely abandoned plans for crypto investments due to uncertainty.
Experts emphasize that pension funds have fiduciary duties: to protect retirees' savings from losses. The collapse of FTX in 2022 cost the Ontario Teachers’ Pension Plan $95 million, serving as a serious lesson. Even in the United Kingdom, where 27% of adults consider crypto for pensions, regulators highlight the risks of hacking attacks and lack of protection. In Australia, despite the increase in investments in SMSF to $1.7 billion, large funds limit allocation to 0.05%.
This trend reflects conservatism: pension funds choose traditional assets like stocks and bonds, despite pressure on returns from demographic changes. While retail investors rejoice in the rally, institutional investors avoid crypto.
#CryptoDivestment #PensionFunds #BitcoinRally #CryptoRisks #FinancialNews
Subscribe to #MiningUpdates to receive fresh news about mining and the crypto market!
