National Pension Service of South Korea Invests USD 20M in Coinbase
The National Pension Service (NPS) of South Korea has made an investment of USD 20 million in Coinbase. Regulatory filings with the US Securities and Exchange Commission (SEC) reveal that in the third quarter of 2023, the NPS acquired 282,673 shares of Coinbase Global.
Pension Fund Acquires 282,673 Shares of Coinbase Global
The National Pension Service of South Korea was founded in 1988. Managed by the National Pension Service Investment Management (NPSIM), it is ranked as the world's third-largest public pension fund, which mandates enrollment for both Korean citizens and foreign residents in Korea. In a recent SEC filing, the NPS disclosed its investment in Coinbase Global, securing 282,673 shares worth USD 20 million.
The NPS investment in Coinbase has surged by an impressive 40%. The shares were purchased at an average price of USD 70.5 per share. Currently, the shares are trading at USD 98.15 each, showing a substantial 26% increase over the past month.
NPSIM's Positive Move on Crypto Investment
The decision to invest in Coinbase shares (listed as COIN on Nasdaq) rather than directly in cryptocurrencies aligns with a growing global trend. Many entities are opting for stocks of publicly traded firms in the crypto sector as a lower-risk alternative. The move is seen as a strategic decision by the NPSIM to invest in COIN while minimizing potential risks.
The National Pension Service reportedly manages assets valued at around USD 755 billion. It faced challenges in 2022 with a negative accumulated return of 79.6 trillion won (USD 60.17 billion). However, this year has seen a positive turnaround, with a return of 95.2 trillion won (USD 71.96 billion) so far. This shift to crypto investments appears to be a strategic move to counterbalance losses incurred in the previous year.
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