South Korea’s National Pension Service (NPS) has made a strategic investment in the U.S.-based cryptocurrency exchange, Coinbase. This move marks a significant milestone for NPS as it is the first time the pension fund has added a digital assets company to its U.S. stock portfolio.
According to a recent filing with the U.S. Securities and Exchange Commission (SEC), NPS acquired over 280,000 shares of Coinbase, amounting to approximately $20 million, during the third quarter of this year. This investment has proven to be highly profitable for the pension fund, with a reported 40% profit. NPS typically avoids direct investment in cryptocurrencies due to their inherent market fluctuations. Instead, they seek exposure to the industry through investments in companies operating in the space, such as Coinbase and MicroStrategy.
Coinbase has seen a noteworthy increase in its stock value throughout the year, which has contributed to NPS’ substantial profit. The average purchase price of each Coinbase share for NPS was $70.5, but with the recent closing price of $98.15, the pension fund stands to make a profit of approximately 40% within just one quarter. This growth in Coinbase’s stock can be attributed to the overall positive trend observed in the cryptocurrency market. Leading digital assets like Bitcoin, Ethereum, and Solana have all experienced significant gains of over 100% in the past year.
In addition to its notable stock performance, Coinbase has achieved substantial growth and secured various licenses in different countries. The exchange has obtained licensing in Bermuda to launch an international exchange and is now offering perpetual futures trading to non-U.S. retail customers. Furthermore, Coinbase has expanded its operations outside of the U.S. by obtaining licenses in several European countries, including the Netherlands, Spain, Ireland, and Italy.
The National Pension Service of South Korea’s investment in Coinbase has proven to be a wise decision, resulting in a 40% profit within just one quarter. This move demonstrates NPS’ willingness to adapt to the evolving investment landscape and embrace the potential of digital assets. As the world’s third-largest pension fund, with assets exceeding $800 billion, NPS’ success in this investment showcases the increasing recognition of cryptocurrencies and their related industries among large institutional investors. The performance and achievements of Coinbase further highlight the positive momentum in the cryptocurrency market, indicating a growing interest and trust in this emerging asset class.