U.S. Pension Systems Quietly Expand Bitcoin and Crypto-Linked Equity Exposure

• A new report found that American pension schemes have increased their allocations to Bitcoin, Ethereum and stablecoins, but have avoided other altcoins.
• Market volatility has made some question these allocations, with 11 pension funds recently losing over $250 million after Strategy’s shares tanked.

There has been a heated debate in regulatory and investment circles over whether pension funds should include crypto in their portfolios. However, even as the debate continues, a new report has found that these funds have been quietly expanding their exposure as they seek to beat average market returns. The report, dubbed ‘US Public Pension and Trust Fund Investment in Digital Assets,’ was compiled by the Reason Foundation, a public policy think tank based in Los Angeles. It revealed that interest in crypto is growing rapidly among pension funds, with some already investing in these assets as others explore their options. Some funds have purchased the crypto directly, although this is in the minority. Most have opted for regulated avenues, with exchange-traded funds (ETFs) and buying the stocks of companies that are highly exposed to crypto, like Michael Saylor’s Strategy, among the leading avenues. Combined, pension funds have invested around $1 billion in crypto and related assets, Reason says.

Examining key policy considerations and creating a framework for public pension system investment in Bitcoin and other cryptocurrencies.

— Reason Foundation (@ReasonFdn) February 11, 2026

Dozens of other economies beyond the US are also recording an increasing interest in crypto from pension funds. Last year, Coinbase and OKX launched new products targeting pension funds in Australia, a sector worth $2.3 trillion. A report by Bitget exchange found that this interest is highest with Gen Z and Alpha at 20%, as we reported last month. The Age of Bitcoin Pensions As Reason points out, pension funds allocate resources to many different assets for hedging, to profit from price appreciation and for diversification. Some assets like gold fulfil all three, and Bitcoin could be the next asset that these funds look to. In recent years, crypto has been a mixed bag for pension funds. A report published a week ago found that 11 US state pension funds had purchased shares of Saylor’s Strategy. Of these, only one was not in the red at the time, with an average loss of 60% for the other 10. Combined, they had lost over $250 million. This included the New York State Common Retirement Fund, one of America’s largest with $280 billion in assets under its management, which lost $53 million. It’s not the first time pension funds have lost millions to crypto. When infamous exchange FTX collapsed four years ago, the Ontario Teachers Pension Plan in Canada lost nearly $100 million invested in the exchange. Caisse de dépôt et placement du Québec, Canada’s second largest pension fund, lost $150 million. However, many have made hundreds of millions from their crypto investment. The California Public Employees’ Retirement System ($500 billion in AUM) has invested in Coinbase, which remains the largest crypto exchange in the US. These investments will only rise in the future, with President Trump signing an executive order that allowed 401(k) pension funds to invest in Bitcoin in August. “My administration will reduce regulatory burdens and legal risks that prevent American workers’ pension funds from achieving competitive returns and the asset diversification needed for a secure and comfortable retirement,” the pro-crypto Republican president stated.