UK Pension Funds Warm to Bitcoin: Institutional Adoption Heats Up in 2025

Traditional finance finally catches up—pension managers are dipping toes into crypto waters.

Once skeptical, UK retirement funds now eye Bitcoin allocations as regulatory clarity improves and yields elsewhere stagnate. No concrete numbers yet, but whispers suggest allocations could hit 1-3% within 18 months.

Funny how 'risky' assets suddenly look appealing when bonds yield less than inflation. The old guard still hedges—expect endless 'digital gold' comparisons before they actually buy.

Beyond pension schemes

Nasri told Decrypt that Cartwright hasn't just been encountering growing interest from pension schemes. Corporations are beginning to learn how Bitcoin can be used for 24/7 cross-border transactions and held as a reserve asset, while charities "are increasingly seeing it as another source for donations."

Nonetheless, he stressed that Bitcoin might not be suitable for everyone.

"Bitcoin in a portfolio is not appropriate where the investment time horizon is short, but that still leaves hundreds of defined benefit schemes, all defined contribution schemes—and most charities and companies—that should be having a serious conversation about it," he said.

Daily Debrief Newsletter