Canada’s largest public fund manager has entered Bitcoin exposure. Alberta Investment Management Corp, known as AIMCo, disclosed a major share purchase. The fund purchased 1.38 million shares of Strategy (formerly MicroStrategy). The investment was worth close to $219 million. So, it was the fund’s first Bitcoin-related investment.

AIMCo Makes First Bitcoin-Linked Investment Through Strategy

AIMCo is the public pension fund manager for Alberta. Its assets under management are reported to be between $142 billion and $195 billion. It manages pensions, endowments and savings funds. For that reason, the purchase received a lot of attention today.

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Strategy is known for its Bitcoin buying. It has substantial Bitcoin holdings on its balance sheet. Investors also use Strategy shares as a proxy for Bitcoin. This allows institutions to get exposure to cryptocurrency without owning coins.

The new AIMCo holding could be a shift. Big funds tend to be cautious. But roundabouts can reduce custody risks. So listed firms like Strategy are good for the risk-averse.

BitcoinTreasuries tweeted about the filing. It said it was a first BTC allocation. And some traders deemed it significant for a sovereign-style fund. The news rapidly circulated in the cryptocurrency community.

Strategy shares are already held by other Canadian institutions. These reportedly include banks and pension funds. So, AIMCo joins a Canadian club using equity exposure to gain Bitcoin exposure.

Why Public Funds Are Watching Bitcoin Exposure

Public funds want growth with risk management. Bitcoin can have storage and policy constraints. But public shares are traded in established markets. So, some managers start here.

But Strategy shares can be volatile. The shares can track Bitcoin. It can also be affected by corporate financing. So investors typically consider Bitcoin risk and corporate risk.

In the case of AIMCo, the size of the investment is notable. $219 million is a significant investment for any fund. But it is still modest relative to the fund’s total assets. So the fund could be experimenting with exposure.

Investors will be watching future reports. If it increases, it may be gaining confidence. If it doesn’t, it may still be a short-term play. In any case, it’s a positive for institutional Bitcoin.

Canada has been a source of crypto products. It was home to some of the first Bitcoin ETFs. As a result, local institutions may be more comfortable with digital asset markets than some of their counterparts.

The timing is also important. Bitcoin has gained attention following corporate interest. Several treasury management firms hold Bitcoin. So Strategy remains a top proxy for the theme.

AIMCo has not detailed its long-term plan publicly. But the announcement is significant. Large funds are taking more interest in Bitcoin-related assets.

In any case, AIMCo’s move demonstrates that cryptocurrency exposure is going mainstream. Rather than purchasing coins, the fund went public. This may affect other funds considering such moves in 2016.

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