The National Pension Service (NPS) of South Korea, recognized as the world’s third-largest pension fund, has recently made a significant investment in the cryptocurrency sector. In a strategic move, the NPS acquired a substantial amount of Coinbase stock, marking a notable shift in its investment portfolio towards cryptocurrency-related companies.
Coinbase, a leading cryptocurrency exchange in the United States, has been a prominent player in the digital asset market since its Nasdaq listing in April 2021. The NPS’s investment in Coinbase aligns with the growing trend of institutional interest in cryptocurrency and related businesses. This move by the NPS is particularly noteworthy given its historical caution regarding the volatility of virtual assets.
The investment details indicate that the NPS secured 282,673 shares of Coinbase during the third quarter, with a total valuation of approximately $19,934,100, equivalent to 26.1 billion won. This acquisition is a significant development, considering the NPS’s status as South Korea‘s largest investment group, managing over 997.4 trillion won, roughly $800 billion in assets.
The investment in Coinbase has proven to be highly profitable for the NPS. The fund achieved a remarkable 40% profit in the quarter, a testament to the strategic nature of this investment. COIN shares have risen 4% in the third quarter and an impressive 177% this year, reflecting the growing strength and acceptance of cryptocurrency-related businesses in the mainstream financial market.
Despite its venture into a virtual asset-related company, the NPS maintains that it has not shifted its stance on direct cryptocurrency investments. The fund’s investment in Coinbase is seen as a strategic move to capitalize on the growth of the cryptocurrency exchange without directly engaging in the more volatile cryptocurrency market.
Meanwhile, Coinbase itself is expanding its market offerings, further solidifying its position in the cryptocurrency sector. The exchange recently announced the introduction of perpetual futures contracts for Solana (SOL) and Avalanche (AVAX), starting November 14. The SOL-PERP and AVAX-PERP markets, set to launch on the Coinbase International Exchange & Coinbase Advanced, underscore the exchange’s commitment to diversifying its trading options and catering to a broader investor base.
