Cartwright Pension Trusts Sees 60% Return on Bitcoin Allocation

Cartwright Pension Trusts has seen a significant increase in client interest after helping a UK pension fund allocate 3% of its portfolio to Bitcoin in 2024, which yielded a 60% return. This move highlights a growing trend among pension funds, charities, and companies viewing Bitcoin as a strategic, long-term asset. The scarcity of Bitcoin and the increasing clarity around its regulatory environment are driving this shift.

Arash Nasri, a senior investment consultant at Cartwright Pension Trusts, noted that the industry's reaction to this development has been surprisingly positive. The firm has launched an "Annual Bitcoin Review" to educate institutions about the potential benefits and risks of Bitcoin. Nasri emphasized that if Bitcoin continues to produce the anticipated returns, the decision for the pioneering pension fund will likely shift from "when to allocate more" to "when to trim."

Discussions are ongoing with several other clients about following suit, but Nasri stressed the importance of pension funds being fully informed about how Bitcoin works and gradually building up an allocation with a long-term outlook. He also acknowledged some pushback from skeptics within the industry, who point to Bitcoin's price volatility. Nasri countered this by stating that the industry should be experts in portfolio construction and position sizing, and that there is a lack of willingness to learn about an emerging form of money and new technology that could significantly impact investment portfolios and future returns.

Beyond pension schemes, corporations are beginning to explore how Bitcoin can be used for 24/7 cross-border transactions and held as a reserve asset. Charities are also increasingly seeing Bitcoin as another source for donations. However, Nasri noted that Bitcoin in a portfolio is not appropriate for short-term investment horizons, but it is suitable for hundreds of defined benefit schemes, all defined contribution schemes, and most charities and companies that should be having a serious conversation about it.

Vaultz Capital plc, a UK-listed business managing digital assets, recently acquired an additional 50 Bitcoin, bringing its total holdings to 60 BTC. This move is part of a larger strategy by businesses to use Bitcoin as a hedge against inflation and currency risks. Companies like MicroStrategy and Tesla have already demonstrated the potential of Bitcoin as a treasury asset, with MicroStrategy's $5.9 billion Bitcoin portfolio yielding a 29% return since 2020.

Vaultz Capital's strategic shift towards Bitcoin began in May 2025 when the company, formerly known as Helium Ventures, rebranded and focused on digital assets. In collaboration with NewQube Holdings, Vaultz Capital created a special purpose vehicle (SPV) called VaultZ Treasury. This SPV, which raised £4 million and issued 9.3 million new shares, aims to acquire Bitcoin hash rate exposure and establish a business that can grow and generate revenue by participating in the Bitcoin network architecture. The post-dilution value of £14.3 million reflects investor confidence in this strategic change, marking a 37% increase from pre-issue levels.

Despite the potential benefits, Vaultz Capital acknowledges the risks associated with its Bitcoin strategy, including market volatility, security vulnerabilities, and regulatory uncertainty. The UK Financial Conduct Authority (FCA) has classified Bitcoin as a high-risk asset, and Vaultz Capital is not regulated by the FCA. Investors are not protected by the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS). However, the company emphasizes strict due diligence and strong governance to support its long-term vision.

Vaultz Capital's relisting on the Alternative Quotation Stock Exchange (AQSE) on June 26, 2025, at 43 pence per share provides retail investors with a new avenue to gain exposure to Bitcoin through stocks. The company's modest share count of 33.2 million post-dilution makes it more accessible than larger competitors. Analysts suggest that the optimal time to acquire and hold Vaultz Capital shares is during the 12 to 18 months when Bitcoin is gaining traction. Vaultz Capital's purchase of 50 BTC signals its strategic adoption of Bitcoin as a corporate treasury asset, aligning with a broader trend in the business world towards digital currencies. As more companies recognize Bitcoin's potential as a hedge against economic instability, Vaultz Capital's decision could inspire others to follow suit, potentially reshaping financial management in the digital age.