An unnamed UK pension scheme has sparked controversy after investing 3% of its assets in Bitcoin, becoming the first in the country to do so, according to Sky News.
The move has been criticised and called "deeply irresponsible" with the warning that it risks retirees' futures by speculating in volatile assets.
The pension scheme's advisor, Cartwright, argued that Bitcoin offers diversification and could yield high returns with minimal downside risk.
However, critics, including actuary Daniel Wiltshire, caution that pension funds should prioritize long-term stability over short-term speculation.
Bitcoin’s volatility, with sharp price swings, raises concerns about its suitability for pension portfolios, despite its recent price surge. Some experts, however, see the investment as a reasonable risk, suggesting that small allocations to Bitcoin could be part of a diversified portfolio.