The South Korean National Pension Service (NPS) has made a significant profit of 40% from its recent investment in Coinbase, a leading cryptocurrency exchange based in the United States. This comes as a surprise, as the NPS typically avoids direct investments in cryptocurrencies due to their volatile nature. Instead, the fund seeks exposure to the emerging industry through stocks of companies operating in the crypto space, such as Coinbase and MicroStrategy. This move marks the first time the NPS has added a digital assets company to its U.S. stock portfolio, despite opposition from the country’s national assembly.
According to a filing with the U.S. Securities and Exchange Commission (SEC), the NPS acquired over 280,000 shares of Coinbase, valued at approximately $20 million, during the third quarter of the year. Local media reports indicate that the average purchase price per share was $70.5, while the recent closing price stands at $98.15. With this increase in stock value, the NPS stands to profit roughly 40% within just one quarter. This successful investment has demonstrated the potential for substantial gains in the cryptocurrency market, even through indirect means.
The National Pension Service is a public pension fund in South Korea and currently ranks as the world’s third-largest pension fund, with assets exceeding $800 billion. Despite its standing, the NPS has been cautious about venturing into the cryptocurrency industry. However, this recent investment in Coinbase suggests a changing perspective and a recognition of the potential growth and profitability of digital assets.
Coinbase has experienced remarkable growth in its stock value over the past year. Tradingview data shows that Coinbase shares are among the best-performing crypto-related stocks, with a 62% increase over the last six months and a 168% increase year-to-date. This positive performance can be attributed to the overall upward trend of the crypto market, with prominent digital assets like Bitcoin, Ethereum, and Solana gaining over 100% in value during the past year.
Coinbase’s Expansion and Success
In addition to its stock performance, Coinbase has made significant strides in expanding its services and global reach. The exchange obtained licensing from Bermuda to launch an international exchange and now offers perpetual futures trading to non-U.S. retail customers. Moreover, it has secured licenses in multiple European countries, including the Netherlands, Spain, Ireland, and Italy, as part of its plans to expand beyond the United States. These expansions and licensing achievements further validate Coinbase as a leader in the crypto industry and contribute to its positive trajectory.
The National Pension Service’s profitable investment in Coinbase stocks showcases the increasing acceptance and recognition of the cryptocurrency industry. By opting for indirect exposure to digital assets through stocks of industry-leading companies like Coinbase, the NPS has demonstrated the potential for substantial profits in the crypto market. As the third-largest pension fund in the world, the NPS’ decision to invest in Coinbase sends a positive signal to other institutional investors and further establishes cryptocurrency as a legitimate and attractive asset class. The performance and achievements of Coinbase also highlight the overall growth and success of the crypto industry as it continues to gain mainstream recognition and adoption.
