Colombia’s pension industry is taking another step into the digital asset space as AFP Protección, the country’s second-largest private pension and severance fund manager, prepares to launch an investment fund with exposure to Bitcoin. The initiative reflects growing institutional interest in cryptocurrencies while maintaining a cautious approach to risk and regulation.
AFP Protección Introduces Bitcoin-Linked Fund for Diversification
Juan David Correa, president of Protección SA, confirmed the plan in an interview with local media outlet Valora Analitik. He explained that access to the Bitcoin-linked fund will be strictly limited to qualified investors and offered only through a personalized advisory process. This process is designed to evaluate each client’s risk profile before allowing any allocation to Bitcoin.
According to Correa, diversification is the key motivation behind the product. Investors who meet the eligibility criteria will be able to allocate a small percentage of their portfolio to Bitcoin if they choose. The fund is positioned as an optional diversification tool rather than a core investment, allowing participants to gain exposure to digital assets without significantly increasing overall portfolio risk.
Protección’s move follows a similar decision by Skandia Administradora de Fondos de Pensiones y Cesantías, which began offering Bitcoin exposure in one of its portfolios in September of last year. With this launch, Protección becomes the second major pension fund administrator in Colombia to enter the crypto investment space.
Bitcoin Fund Will Not Affect Core Pension Investments
Protección emphasized that the new Bitcoin-linked fund will not change how the majority of Colombian pension savings are managed. Traditional assets such as fixed income instruments, equities and other established investments will continue to form the backbone of pension portfolios. The Bitcoin fund is designed as an additional option for investors who are comfortable with higher volatility and are seeking alternative assets.
Founded in 1991, AFP Protección manages more than 220 trillion Colombian pesos, or approximately $55 billion, in assets for over 8.5 million clients across mandatory and voluntary pension plans as well as severance accounts. The broader mandatory pension fund market in Colombia reached 527.3 trillion pesos as of November 2025, with nearly half of those assets invested abroad.
The launch comes amid increasing regulatory clarity in Colombia’s crypto sector. Earlier this month, the country’s tax authority, DIAN, introduced a mandatory reporting framework for crypto service providers. The new rules require exchanges, custodians and intermediaries to collect and submit user and transaction data, aligning Colombia with the OECD’s Crypto-Asset Reporting Framework. This framework enables the automatic exchange of crypto-related tax information with foreign authorities and includes penalties for non-compliance.
