South Korea’s National Pension Service (NPS), holding the rank of the world’s third-largest pension fund by assets, purchased Coinbase shares worth about $20 million.
According to the latest stock holding report submitted to the U.S. Securities and Exchange Commission (SEC), the NPS purchased 282,673 Coinbase shares at an average price of $70.5, totaling approximately $19.92 million, or about 26 billion Korean won.
Coinbase, a major asset exchange in the United States, has been listed on Nasdaq since April 2021. The company’s stock and the broader virtual asset market have benefited from increased crypto trading volume and performance. This was highlighted when Bitcoin reached its highest level in 18 months on Nov. 9, leading to a 5.14% increase in Coinbase’s stock value, closing at $92.86.
The National Pension Service, known for its cautious approach towards the volatility of digital assets, recently made its position clear. Facing criticism in 2021 for its indirect investment in a business related to virtual assets, the pension fund emphasized that its investment was solely in the exchange, firmly stating that cryptocurrencies are not a part of its investment strategy.
Despite these criticisms, a Pensions Age survey earlier this year indicated that many pension schemes view digital assets as a significant part of the investment landscape, offering opportunities for portfolio diversification.
Following the National Pension Service’s acquisition of Coinbase, Bitcoin’s strength in the market resulted in substantial profits. The average purchase price per Coinbase share for the National Pension Service was $70.5. With Coinbase closing at $98.15, the pension fund is realizing a profit of approximately 40% in just one quarter.