AFP Protección launches controlled Bitcoin fund in Colombia

AFP Protección will launch a Bitcoin fund for qualified investors, offering limited, controlled access for portfolio diversification. The move reflects rising institutional interest in digital assets with strict risk controls.

AFP Protección, Colombia's second-largest pension fund manager, is preparing to launch a Bitcoin exposure fund designed to diversify long-term portfolios. This fund will be accessible exclusively to qualified investors, who must complete a personalized advisory process to assess their financial situation, investment goals, and risk tolerance. Access to the fund will be restricted, with even eligible clients allowed only a limited allocation to Bitcoin. This ensures that traditional assets like bonds and equities remain the primary components of pension portfolios, maintaining a balanced approach. This initiative highlights the growing institutional interest in digital assets within Colombia's private pension sector. It also demonstrates a cautious strategy, emphasizing strict risk controls and diversification over speculation. Recent regulatory changes, such as mandatory reporting for crypto service providers, are fostering a more structured environment for these investment products.