Colombia’s Bitcoin Investment Fund Suggests Institutional Change
Colombia’s institutions are increasingly open to digital assets. The AFP Protección company, the second-largest private pension and severance fund manager in the country, will establish a Bitcoin investment fund, as part of the developments that the region has had.
Juan David Correa, the president of Protección SA, confirmed the initiative and noted that the product will provide a controlled exposure to Bitcoin on a measured basis. Not all customers will be allowed to open. In contrast, access will be only provided after a customised advisory review designed to assess an investor’s risk profile and financial situation.
Focus on Bitcoin Exposure for Diversification, Not Speculation
The new offer is not so much speculation as diversification of portfolio, according to Correa.
“The most important thing is diversification,” Correa said, with qualified investors able to put a capped amount into Bitcoin if it fits with their investment goals.
This method ensures that there is no overpowering Bitcoin exposure, aligning with Protección’s focus on capital preservation for retirement savings.
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La protección se une a la tendencia de fondos de pensiones colombianos
Tanto Protección como Skandia Administradora de Fondos de Pensiones y Cesantías, que en septiembre del año pasado incluyeron exposición a Bitcoin dentro de uno de sus portafolios. This makes Protección the second large pension fund administrator in Colombia to officially enter digital assets after Professor.
The decision makes sense as pension managers are constantly on the lookout for alternative assets to improve returns while managing risk due to changing circumstances.
Bitcoin Fund Will Bring No Changes to Pension Strategy
Protección stated that the Bitcoin-linked fund will not supplant pension investments. Fixed-income instruments, equities, and other traditional assets will continue to be the bedrock of Colombian pensions.
In fact, the Bitcoin fund serves as an additional optional layer for accredited investors to diversify away from the markets.
AFP Protección at a Glance
Incorporated in 1991, AFP Protección manages approximately $55 billion (or 220 trillion Colombian pesos) in assets for over 8.5 million clients, with mandatory and voluntary pensions and severance accounts.
Colombia’s Pension Sector and Expanding Regulation of Cryptocurrencies
By November 2025, the mandatory pension system of Colombia reached 527.3 trillion pesos in assets, almost half invested abroad. Due to this international exposure, the interest in alternative assets like Bitcoin is increasing.
Colombia is also ramping up regulatory scrutiny at once. At the start of this month, the DIAN — the country’s tax authority — mandated crypto-reporting rules for exchanges, custodians, and intermediaries. The framework is consistent with the OECD’s Crypto-Asset Reporting Framework (CARF), which requires reporting on detailed transaction and user data, and facilitates automatic information exchange with foreign tax authorities.
Colombia’s Bitcoin Pension Move Is Impactful
AFP Protección’s launch of a Bitcoin investment fund could be a sign that institutions are starting to see the digital asset as something to diversify portfolios with rather than a fringe experiment. Colombia is emerging as a serious contender in the next phase of crypto adoption in Latin America, as regulation matures and investor protections strengthen.
