South Korea's National Pension Service denies indirect investment in cryptocurrency assets, claims it only tracks the MSCI index.

South Korea's National Pension Service (NPS) has been revealed to have holdings in companies such as Coinbase and MicroStrategy since the end of last year, leading to speculation that it is bullish on the cryptocurrency market. However, NPS has denied these claims.

South Korea's National Pension Service (NPS) Invests in Crypto Stocks

NPS disclosed last year in the third quarter that it made its first purchase of 282,673 shares of Coinbase stock, worth approximately $19.9 million at the time, marking the NPS's inclusion of digital asset-related companies in its US stock investment portfolio.

NPS is one of South Korea's largest investment groups and the world's third-largest pension fund, managing assets totaling over 997.4 trillion Korean won, approximately $800 billion.

In the second quarter of this year, NPS also entered the market with 245,000 shares of MicroStrategy (MSTR), with an investment amount of approximately 46 billion Korean won, accounting for 0.04% of its US stock investment portfolio.

However, according to reports from South Korean media outlet Money Today, NPS emphasized that the aforementioned investments were not specifically targeted at crypto assets.

South Korea's National Pension Service Expands Indirect Bitcoin Investments, Adds MicroStrategy Shares

NPS: Not Bullish on Virtual Assets

Regarding the perceived indirect investments in crypto assets, NPS stated that investments in companies like Coinbase and MicroStrategy were not aimed at virtual assets, and cryptocurrencies like Bitcoin were not their investment targets. They also emphasized that their investment activities simply track component stocks in benchmark indices like the MSCI by Morgan Stanley Capital International, and they did not actively invest in cryptocurrency assets.

NPS will continue to operate its funds based on the principles of "profitability and stability," and any discussions in the Fund Operation Committee regarding investments in companies related to virtual assets will require certain restrictions.

South Korean National Assembly Health and Welfare Committee member Baek Jong-hyun also urged for a more cautious investment policy regarding virtual assets to safeguard the long-term security and stability of the National Pension Fund.

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