Colombia Pension Fund AFP Protección Confirms Plans for Bitcoin Fund

Why Is Protección Introducing Bitcoin Exposure?

AFP Protección, Colombia’s second-largest private pension and severance fund manager, is preparing to launch an investment fund that includes exposure to Bitcoin, becoming the latest institutional player in the country to cautiously step into digital assets.

The plan was confirmed by Juan David Correa, president of Protección SA, in an interview with local outlet Valora Analitik. Access to the product will be restricted and available only through a personalized advisory process that evaluates each client’s risk profile. Participation will be limited to investors who meet predefined suitability criteria.

“The most important element is diversification,” Correa said. He added that eligible clients “will find a space for a percentage of their portfolio, if they so wish, to be exposed to this type of asset.”

The structure reflects a controlled approach rather than a broad rollout, keeping Bitcoin exposure confined to a narrow segment of investors who actively opt in and pass internal assessments.

Investor Takeaway

How Does This Fit Colombia’s Pension Landscape?

Protección’s planned launch follows a similar move by Skandia Administradora de Fondos de Pensiones y Cesantías, which began offering Bitcoin exposure in one of its portfolios in September last year. With Protección entering the space, two of Colombia’s largest private pension administrators now offer some form of access to the asset.

Founded in 1991, Protección manages more than 220 trillion Colombian pesos, or roughly $55 billion, on behalf of over 8.5 million clients. Its assets span mandatory and voluntary pension plans, as well as severance accounts, placing the firm among the most influential institutional investors in the country.

At the system level, Colombia’s mandatory pension fund market stood at 527.3 trillion pesos as of November 2025. Nearly half of those assets are invested outside the country, reflecting a long-standing reliance on international markets for portfolio construction and risk distribution.

Against that backdrop, the introduction of a Bitcoin-linked fund represents a narrow expansion rather than a structural overhaul. The asset remains peripheral relative to the size and composition of the broader pension system.

Will Bitcoin Affect Core Pension Allocations?

Protección has made clear that the Bitcoin fund does not alter how the bulk of pension savings are allocated. Fixed income instruments, equities, and other traditional assets remain the foundation of its pension portfolios.

Instead, the product is framed as an additional option for qualified investors who already hold diversified portfolios and are willing to tolerate higher volatility in exchange for potential upside. The firm’s messaging draws a clear line between core retirement assets and optional satellite exposure.

This separation is likely intended to address both regulatory expectations and public sensitivity around pension risk. In Colombia, as in many markets, retirement savings are politically and socially sensitive, making any perceived increase in risk a potential flashpoint.

By restricting access and keeping allocations small, Protección appears focused on limiting both financial and reputational exposure while responding to growing client interest in digital assets.

Investor Takeaway

How Regulation Shapes the Timing

The planned launch comes as Colombia tightens oversight of the crypto sector. Earlier this month, the country’s tax authority, DIAN, introduced mandatory reporting rules for crypto service providers, including exchanges, custodians, and intermediaries.

The framework aligns Colombia with the OECD’s Crypto-Asset Reporting Framework, allowing for automatic exchange of crypto-related tax information with foreign authorities. Service providers are now required to collect identifying information, report transaction data, apply due diligence standards, and comply with valuation rules.

Failure to meet these requirements can result in penalties, increasing the compliance burden across the sector. For institutional investors, the clearer reporting environment may reduce uncertainty around tax treatment and oversight, even as it raises operational demands.

Protección’s move suggests that large financial institutions see room to operate within this tighter framework, provided exposure is structured carefully and offered to a limited audience.

What This Means for Institutional Crypto Adoption in Colombia

With two major pension administrators now offering Bitcoin exposure, Colombia is beginning to test how digital assets fit within long-term savings frameworks. The approach so far has been cautious, emphasizing optional access, advisory controls, and small allocations.

If demand remains contained and regulatory clarity continues to improve, similar offerings could emerge across the sector. For now, Bitcoin remains an add-on rather than a core building block of Colombia’s pension system.