I spoke to a friend about Bitcoin and he asked if it is safe to invest Pension funds in Bitcoin considering the fact that this is a retirement saving. I am skeptical of investing people's funds in this coin because it can't be predicted also we cannot overlook the fact that Bitcoin may enhance investment returns at retirement.
However, my findings from people that work in these organizations say contributor's funds in some categories can be invested in risky investments because of the high return on investment and contributors have the option to opt for this option but with the exception of the soon-to-retiree.
That is not an easy answer we can give here. In general it makes sense to spread out investments across a broader spectrum of asset classes to reduce the overall risk profile of the portfolio. Diversification is the main concept insurance companies use to try and generate a steady income over time, while protecting the asset against downward risks. That is why the investment guidelines for pension funds are quite long and restrictive. For example, there are fixed percentages on how much the fund can put into stocks or hold in cash. And then are single stock limits the don't allow the fund to put more than 2-3% into one single stock. With so many restrictions I don't think that older pension funds are allowed to invest in crypto currencies. For more newer funds that have been created in the last 3-5 years there might be a small fraction of the capital be allowed in bitcoins and other crytpos.