South Korea’s National Pension Service (NPS) made headlines after reports surfaced regarding its lucrative investment in Coinbase shares during the third quarter of 2023. According to local media outlets citing U.S. SEC filings, the NPS reportedly invested nearly ₩26 billion (approximately $19.92 million USD) in Coinbase shares, reaping significant profits of around 40%.
The investment saw the NPS purchasing 282,673 COIN shares at an average price of $70.5 per share, as detailed by News1. Presently, the value of Coinbase shares has surged to $98.15, marking a substantial increase from the NPS’s initial purchase price.
Despite Coinbase reporting a third-quarter loss of $2.2 million in 2023, the firm notably showcased improved financial performance compared to the previous year’s loss of $545 million for the same quarter. This development coincided with the NPS’s strategic investment in the crypto exchange platform.
Interestingly, the NPS, managing assets exceeding $750 billion as of June 2023, maintains a policy of refraining from direct investments in crypto assets. Instead, the investment in Coinbase shares represents a common approach among firms seeking exposure to the crypto market without direct involvement in cryptocurrencies themselves.
The successful investment by South Korea’s National Pension Service in Coinbase shares underlines the growing interest among institutional investors to gain exposure to the cryptocurrency ecosystem indirectly. This move highlights the potential for traditional financial institutions to capitalize on the crypto market’s growth without directly engaging in digital assets.