South Korean Pension Fund’s Successful Venture into Coinbase

In the third quarter of 2023, the National Pension Service (NPS), one of the largest pension funds globally and a public pension in South Korea, acquired slightly more than 280,000 shares of the international cryptocurrency exchange Coinbase.

Since then, the value of this investment has increased by 39%. In the third quarter of 2023, the NPS obtained 282,673 Coinbase shares, according to a stock holdings report that was submitted to the Securities and Exchange Commission (SEC) of the United States on November 15.

Using data from TradingView, the investment is valued at $27.7 million as of Coinbase’s last recorded close on November 15th, which was $98.15.

The SEC filing indicates that the NPS acquired its tranche of Coinbase shares for approximately $19.9 million, equating to a profit of approximately $7 million, or 39%, for the pension fund.

Local news agency News1 reports that the public pension fund of South Korea recently invested in Coinbase for the first time. This transaction signifies the fund’s initial purchase of Coinbase securities.

Reportedly, the NPS has a policy of avoiding direct investments in cryptocurrencies such as Bitcoin on account of their volatility.

The National Assembly of South Korea reportedly criticized the NPS in 2021 for its investment in a cryptocurrency-related company.

The NPS countered that its investment focus was solely on the exchange and that cryptocurrencies were not intended as investments. Significant growth has been observed in Coinbase stock in 2023, with a July surge to $110 per share.

The value of Coinbase shares has increased by nearly 170% year-to-date from their initial price of approximately $37 in 2023, according to TradingView data.

Since September 2021, when it surpassed $300, the stock has declined by 74%. Coinbase experienced tremendous expansion in 2023, despite being sued by the U.S. SEC.

The June 2023 lawsuit claims that Coinbase sold unregistered securities on its platform in violation of U.S. securities laws.

Coinbase again contested the SEC’s jurisdiction over cryptocurrencies in October, arguing that the agency’s definition of security was overly broad.