KiwiSaver’s Growth Strategy, a $ 350 million retirement plan managed by New Zealand Wealth Funds Management, is said to have allocated 5% of its assets in Bitcoin (BTC), highlighting the continuing influx of institutional investors entering the digital asset space.

Bitcoin’s striking resemblance to gold has been cited as one of the top reasons to enter the trade, according to James Gregor, chief investment officer of New Zealand Funds Management.

“If you are happy to invest in gold, you cannot get rid of bitcoins,” he told New Zealand news agency Stuff, adding that BTC will be used in other KiwiSaver products over the next five years.

Gregor explained that his company first bought Bitcoin in October, when it was worth $ 10,000. In order to complete the transaction, New Zealand funds management had to change the proposal documents to allow investment in cryptocurrencies.

Bitcoin price peaked at $ 61,000 earlier this month, which will bring KiwiSaver 6x profits in just five months. Despite the drop in the bitcoin price over the past week, the pension fund is making a huge profit in bitcoin.

Gregor explained that the KiwiSaver program is “primarily built on traditional asset classes,” but noted that “other opportunities are opening their doors.” When it comes to Bitcoin, it is an asset class that can help “give people the best retirement they can have” thanks to its aggressive structure.

While hedge funds and family offices are constantly using Bitcoin, pension funds are arguably the slowest to adopt the digital asset class. The growth of the institutional slope can help speed up the adoption story.

In the United States, Grayscale noted that pension funds are already digital. “The trophies they give are also growing rapidly,” said Michael Sonnenshin, CEO of Grayscale.