In a notable development indicative of the evolving landscape of the cryptocurrency industry, South Korea’s preeminent investment entity, the National Pension Service, has entered the crypto realm with a substantial investment in Coinbase (NASDAQ: COIN) during the third quarter of 2023.
This marked the first instance of the National Pension Service incorporating a virtual asset-related company into its U.S. stock portfolio. According to the recently disclosed stock holdings report submitted to the U.S. Securities and Exchange Commission (SEC) on the 16th, the National Pension Service secured 282,673 shares of Coinbase stock in the third quarter, amounting to a value of $19,934,100, or approximately 26.1 billion won.
Despite its established policy of steering clear of direct investments in virtual assets due to their inherent volatility, the National Pension Service recognized an opportune moment with Coinbase’s stock. The decision proved to be astute, resulting in a remarkable profit of approximately 40% within a single quarter, propelled by the notable upswing in Bitcoin’s strength subsequent to the acquisition.
It is pertinent to highlight that the National Pension Service, previously criticized for its indirect investments in virtual asset-related businesses, clarified that its investment was solely confined to the exchange. The institution underscored that virtual assets were not a direct investment target for the pension fund, as reported by a local news publication.
During the crypto bull run of 2021, some pension schemes sought direct exposure to crypto assets, indicating a growing trend among institutional investors.
Coinbase’s (COIN) Stock Soars Amid Strong Q3 Performance
The upward trajectory of Coinbase’s (COIN) stock persists, fueled by the crypto exchange’s robust Q3 financial performance announced two weeks ago. On Tuesday, November 15, the COIN stock recorded a notable surge of 6.58%, approaching the $100 mark.
In contrast to the challenging crypto market conditions experienced during the crypto winter of 2022, Coinbase stock underwent a substantial correction, witnessing a 90% erosion of its value since its public listing in 2021. Earlier this year, the COIN stock plummeted to its all-time low of $33. However, demonstrating resilience, the Coinbase stock has experienced an impressive 200% gain in 2023. Despite this resurgence, it is noteworthy that the stock still trades at a 66% discount from its all-time high levels.
This year has seen significant investments in Coinbase from some of the major players in the market. However, it’s worth noting that Cathie Wood of Ark Invest has consistently offloaded COIN stock with each surge, signaling a unique perspective amid the broader investment landscape.
