The Kiwi Saver Growth Strategy of New Zealand Wealth Management announced that it plans to allocate about 5% of its assets to Bitcoin. This announcement highlights the fact that a growing stream of institutional investors are more interested in the digital asset market. Kiwi Saver Growth Strategy is a retirement plan operated in New Zealand, and it has $350 million in investments when converted into United States dollars.

One of the reasons the investment fund plans to make the allocation is because Bitcoin is similar to gold. This is from a statement provided by the chief investment officer, James Grigor. If a person is excited to invest in gold, they should not discount Bitcoin as an option. He added that Bitcoin will be a new option in more of the Kiwi Saver investment products in the near future.

Grigor went on to share that his firm bought Bitcoin for the first time in October 2020. At that time, Bitcoin was valued at $10,000. The fund had to change its offering documents in order to allow it to use assets to execute the trade. Earlier in March, Bitcoin's value peaked higher than $61,000. That would give Kiwi Saver a 600% growth on its investment if it sold them when the asset was at its peak.

Kiwi Saver did not sell its investments at that time, but Bitcoin's value is still a lot higher than it was when the investment fund made the trade. Grigor added that Kiwi Saver has most of its assets in traditional markets. It is willing to expand its horizons if good opportunities are available. The fund's goal is to provide its investors with the best possible retirement through the advantages of compounding.

Hedge funds have been adding more value to Bitcoin. On the other hand, old-fashioned pension funds have been slow to get into this class of assets. As more classic investment institutions get on the bandwagon, this might inspire others to do so as well. The fear of missing out might inspire more Bitcoin demand. In turn, this could accelerate Bitcoin's growth and valuation this month.