Colombia's Second-Largest Pension Fund Set to Introduce Bitcoin Investment
AFP Protección, Colombia's second-largest private pension fund, is gearing up to launch an investment fund that will provide exposure to Bitcoin, aimed at qualified investors while maintaining its core assets.
AFP Protección, Colombia’s second-largest private pension and severance fund manager, is planning to introduce a fund that will enable investment in Bitcoin. According to Juan David Correa, the president of Protección SA, access to this fund will be restricted to qualified investors and will not change the fundamental allocation of Colombian pension savings.
Correa confirmed this initiative in an interview with the local news source Valora Analitik. He noted, “The most important element is diversification,” adding that those eligible will find an opportunity to allocate part of their portfolios to Bitcoin if they choose.
“The most important element is diversification,” said Correa.
“El elemento más importante es la diversificación.”
Protección follows Skandia Administradora de Fondos de Pensiones y Cesantías, which began offering exposure to Bitcoin in one of its portfolios last September, making Protección the second major pension fund manager in Colombia to venture into the digital asset realm.
Bitcoin Fund Will Not Alter Core Pension Investments
The firm clarified that the new Bitcoin-linked fund will not signify a shift in managing the majority of Colombian pension assets, which consist primarily of traditional investments like fixed income instruments and equities. Instead, this fund will serve as an additional choice for qualified investors seeking to diversify their portfolios.
Founded in 1991, AFP Protección manages over 220 trillion Colombian pesos (approximately $55 billion) across pension plans and severance accounts for over 8.5 million clients. The total mandatory pension fund market in Colombia reached 527.3 trillion pesos as of November 2025, with a significant portion allocated internationally.
Earlier this month, Colombia’s tax authority, DIAN, initiated a mandatory reporting framework for crypto service providers, mandating that exchanges and custodians collect and submit data on users and transactions. This new regulation aligns Colombia with international reporting standards, facilitating the exchange of crypto tax information with foreign authorities.
