South Korea's Pension Fund Nets 40% Profit with $20M Investment in Coinbase

• National Pension Service of South Korea Invests in Coinbase
• In-depth Details of the Investment
• Impact of the Investment
• NPS' Involvement in Digital Assets
• Perception of Digital Assets in Pension Schemes

National Pension Service of South Korea Invests in Coinbase

The National Pension Service (NPS) of South Korea acquired nearly $20 million of Coinbase (COIN) shares in the third quarter. This information comes from the NPS' recent stock holding report submitted to the U.S. Securities and Exchange Commission (SEC), as reported by News1, a local news agency.

In-depth Details of the Investment

The NPS purchased 282,673 COIN shares at an average price of $70.5, which totals to an investment worth $19.92 million or approximately 26 billion Korean won (â‚©). As per the closing price of Coinbase on the previous Wednesday, these shares are currently valued around $27.74 million.

Impact of the Investment

The NPS' investment in this Nasdaq-listed cryptocurrency exchange has yielded a substantial 40% profit in the third quarter. Additionally, COIN shares have seen a 4% rise in the third quarter and a remarkable 177% increase this year.

NPS' Involvement in Digital Assets

For the first time in its history, the fund has included a digital assets company, Coinbase, in its U.S. stock portfolio. However, this move has drawn criticism from South Korea's National Assembly, which has expressed concerns over the fund's exposure to businesses dealing with virtual assets. One major argument against pension funds investing in digital currencies is that these assets do not produce any cash. The only way to see a return on these investments is if they are sold to another investor willing to pay a higher price.

Perception of Digital Assets in Pension Schemes

Despite the criticisms, a survey conducted by Pensions Age earlier this year revealed that pension schemes view digital assets as an integral part of investment strategies. They also perceive these assets as an opportunity to diversify their investment portfolios.

Edited by Jonathan Stoker