Colombia Pension Giant Moves Toward Bitcoin as AFP Protección Unveils New Fund

• AFP Protección plans limited Bitcoin exposure through a controlled, advisor-led investment fund
• Colombian pension funds expand crypto access while keeping traditional assets firmly dominant
• Tighter regulation frames institutional Bitcoin adoption across Colombia’s pension industry

Colombia’s pension market is adjusting to shifting investor preferences as AFP Protección outlines plans for Bitcoin exposure. The move places the pension manager among a small group exploring digital assets within regulated structures. Market participants view the step as measured rather than disruptive.

According to Juan David Correa, president of Protección SA, the firm is preparing a Bitcoin-linked investment fund. Access to the product will remain limited. Clients must pass a personalized advisory review before gaining eligibility.

This review process will assess risk tolerance and long-term objectives. According to Correa, only investors meeting defined criteria may participate. Approved clients may allocate just a portion of their portfolios.

Rather than broad adoption, Protección positions the fund as an optional diversification tool. According to Correa, diversification guides the entire structure of the product. Bitcoin exposure will not dominate any investment strategy.

Also Read: XRP Set to Explode in 2026? 73% Chance of Breaking $2.75, Experts Predict!

Controlled access shapes the Bitcoin offering

Notably, Protección stressed that the fund will not alter traditional pension allocations. Fixed income and equities will remain the foundation of portfolios. The Bitcoin-linked option will sit alongside existing alternatives.

AFP Protección manages over 220 trillion Colombian pesos, equal to roughly $55 billion. The firm serves more than 8.5 million clients nationwide. Its scale adds weight to the announcement.

By limiting access, Protección aims to reduce volatility risks. The firm continues to emphasize capital preservation. Bitcoin exposure remains tightly managed.

Pension sector follows a cautious digital trend

Moreover, Protección’s move follows an earlier step by Skandia Administradora de Fondos de Pensiones y Cesantías. Skandia introduced Bitcoin exposure within one portfolio. Protección now becomes the second major pension administrator involved.

Consequently, institutional interest in digital assets is expanding gradually. Colombia’s mandatory pension system holds 527.3 trillion pesos in assets. Nearly half of those assets are invested abroad.

However, growth in crypto-linked products coincides with tighter oversight. Colombia’s tax authority, DIAN, has introduced mandatory reporting rules for crypto service providers. Exchanges and custodians must submit detailed transaction data.

Regulation tightens as adoption expands

Additionally, the reporting framework aligns with the OECD Crypto-Asset Reporting Framework. This alignment enables automatic exchange of crypto tax information across borders. Providers must follow strict due diligence requirements.

Failure to comply may result in penalties. Authorities aim to improve transparency across digital asset markets. Clearer rules may support cautious institutional participation.

Besides responding to demand, Protección’s plan reflects a conservative expansion strategy. The firm maintains a traditional investment focus. Bitcoin exposure remains optional and limited within pension portfolios.

Also Read: XRP’s Key Price Support Level: $1.92 Could Decide the Next Big Move

The post Colombia Pension Giant Moves Toward Bitcoin as AFP Protección Unveils New Fund appeared first on 36Crypto.