The Korea Teachers’ Credit Union, an institutional investor with 40 trillion won ($34.3 billion) in assets as of end-June, rejected claims on Tuesday that it was contemplating investing in bitcoin, the world’s biggest digital currency, via an exchange-traded fund launched by a Korean partner.
“The KTCU has never reviewed an investment in a bitcoin-related ETF, and has no plans to do so,” according to a statement from the credit union.
The comment was made after the KTCU, committed to enhancing teachers’ welfare and financial advantages, will become the first Korea-based institutional investor to invest in cryptocurrencies next year. However, given the fund’s normally risk-averse attitude to investing, the investment would have been perceived as a surprising decision.
As per a media source, KTCU’s external manager in Korea would construct a bitcoin-linked ETF by the first half of 2022, to which the KTCU intends to put its funds. The goal of the spot ETF was to replicate the price action of the world’s biggest digital currency by market capitalization.
According to the media source, KTCU will decide the magnitude of the allocation in a forthcoming investment committee.
The announcement comes a week after ProShares Bitcoin Strategy ETF, a bitcoin-linked ETF, had a spectacular market debut on the New York Stock Exchange Arca. In February of this year, Canadian regulators authorized the world’s first bitcoin exchange-traded fund (ETF).
One has yet to be launched by a Korean asset management firm.
In the six months leading up to June, KTCU’s assets under management increased by 10%. The fund invests in equities, bonds, and alternative investments, with the latter accounting for approximately half of the portfolio.