Colombia’s second-largest private pension fund manager, AFP Protección, is preparing to launch a new investment fund that will give clients limited exposure to Bitcoin.
The company’s president, Juan David Correa, confirmed the plan in an interview with local outlet Valora Analitik. He said access to the Bitcoin-linked fund will be restricted to qualified investors and offered only through a personalized advisory process that evaluates each client’s risk profile.
“The key point is diversification,” Correa said, adding that eligible clients will be able to dedicate a small portion of their portfolios to this type of asset if they choose.
Protección follows another major Colombian fund manager, Skandia, which introduced Bitcoin exposure in one of its portfolios last September. With this move, Protección becomes the second large pension administrator in Colombia to step into the digital asset space.
Core pension savings to remain unchanged
Protección stressed that the new fund will not change how most Colombian pension savings are invested. Traditional assets such as fixed income and equities will continue to make up the core of pension portfolios. The Bitcoin fund is being positioned as an optional add-on for investors looking to diversify.
Founded in 1991, AFP Protección manages more than 220 trillion Colombian pesos (about $55 billion) in assets for over 8.5 million clients across mandatory and voluntary pension plans and severance accounts.
The broader pension fund market in Colombia totaled more than 527 trillion pesos as of November, with nearly half of those assets invested overseas.
Colombia tightens crypto oversight
The move comes as Colombia is also increasing oversight of the crypto sector. Earlier this month, the country’s tax authority introduced new mandatory reporting rules for crypto service providers. Under the new framework, exchanges and custodians must collect and report user and transaction data, aligning Colombia with international standards for crypto tax reporting.
Featured image from: cointelegraph.com