Colombia’s second-largest private pension manager AFP Protección is preparing to launch a Bitcoin-linked investment fund with access to limited clients. The postColombia’s second-largest private pension manager AFP Protección is preparing to launch a Bitcoin-linked investment fund with access to limited clients. The post

Colombia Pension Giant Protección Plans Bitcoin Exposure for Select Clients

  • Colombian pension manager AFP Protección will offer limited Bitcoin exposure to clients who pass a risk assessment and one-on-one advisory.
  • The fund targets long-term diversification rather than speculation, managing a small portion of the firm’s $55 billion in total assets.
  • This move follows a regional trend of rising adoption in Brazil and Venezuela, coinciding with stricter reporting rules from Colombia’s tax authority.

AFP Protección, a major Colombian pension manager, is planning to let some clients invest a small slice of their retirement portfolio in Bitcoin (BTC).

According to a report by Valora Analitik, Protección, which is currently the country’s second-largest private pension and severance fund manager, said the Bitcoin option will not be open to everyone. Clients would need to go through a one-on-one advisory check, and only those who fit the risk requirements could use it.

Protección is preparing to launch a fund with Bitcoin exposure from Colombia. The product will not be focused on short-term speculation, but on expanding diversification options with comprehensive risk management and a long-term vision, explained its president, Juan David Correa.

Valora Analitik

This is another sign that Bitcoin is moving into mainstream finance in Colombia, though it does not mean Colombia’s pension system is going full crypto, and Protección said most pension money will stay in normal assets like bonds and stocks. The Bitcoin exposure is just an extra, optional product for a limited group.

Read more: Bitcoin Whipsaws Higher After Trump Signals Greenland Deal, Drops EU Tariff Threat

Why Protección’s Move Matters

Protección manages more than 220 trillion Colombian pesos in assets, about US$55 billion (AU$84.15 billion), for over 8.5 million clients. Another pension manager, Skandia, started offering Bitcoin exposure in one portfolio in September last year.

The announcement also comes as Colombia increases oversight of crypto. The tax authority DIAN has introduced mandatory reporting rules for crypto service providers, requiring them to submit user and transaction data.

Other countries in the region have adopted cryptocurrencies one way or another. Colombia’s neighbour, Venezuela, has seen a prominent rise in stablecoin usage, mostly due to local fiat inflation and economic uncertainty. 

Brazil saw a spike in crypto adoption, with total transaction volume up 43% from a year earlier, according to a Mercado Bitcoin report.

Related: UBS CEO: Blockchain’s Takeover of Traditional Banking Is Inevitable

The post Colombia Pension Giant Protección Plans Bitcoin Exposure for Select Clients appeared first on Crypto News Australia.

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