KEY FACTS: Colombia’s second-largest private pension and severance fund manager, AFP Protección, is preparing to launch an investment fund that provides controlled exposure to Bitcoin, marking a notable step in institutional crypto adoption in Latin America. The firm, which manages over 220 trillion Colombian pesos (approximately $55 billion) in assets and serves more than 8.5 million clients, will offer this Bitcoin-linked option exclusively to qualified investors who pass a personalized risk assessment and advisory process. This addition serves purely as a diversification tool and will not alter the core structure or traditional allocations (focused on fixed income, equities, and conventional assets) of standard Colombian pension savings. The key focus is diversification, allowing eligible participants to allocate a portion of their portfolio to Bitcoin if they choose. AFP Protección becomes only the second major Colombian pension administrator to enter this space, following Skandia’s introduction of Bitcoin exposure in one of its portfolios in September 2025.

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Image source: Colombian Flag, Bitcoin

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Colombia's Pension Fund Manager AFP Protección to Launch Bitcoin Exposure Fund for Qualified Investors

Colombia’s second-largest private pension fund manager, AFP Protección, is set to introduce Bitcoin exposure to its clients through a dedicated investment fund. This development marks a significant step in the growing institutional adoption of cryptocurrencies in Latin America, particularly within conservative retirement savings systems.

AFP Protección, established in 1991, ranks as the second-largest administrator of private pension and severance funds in Colombia. It oversees more than 220 trillion Colombian pesos (roughly $55 billion USD) in assets under management (AUM) and serves over 8.5 million clients through both mandatory and voluntary pension plans, as well as severance accounts. The announcement positions the firm as a pioneer among major Colombian pension administrators entering the digital asset space.

The forthcoming product will take the form of an investment fund offering controlled exposure to Bitcoin. Importantly, this will not involve altering the core structure or allocation of standard Colombian pension savings. Traditional investments, such as fixed income instruments, equities, and other conventional assets, will continue to form the backbone of most portfolios. Instead, the Bitcoin-linked option is designed as an additional diversification tool available exclusively to qualified investors.

Access to the fund will be tightly restricted. Potential participants must go through a personalized advisory process where their risk profile is thoroughly assessed. Only those clients who meet specific suitability criteria will be permitted to allocate a portion of their portfolio to this asset class. Juan David Correa, president of Protección SA, emphasized that the strategic intent behind the move is diversification. Those who can participate will find a space for a percentage of their portfolio, if they so wish, to be exposed to this type of asset.

Meanwhile, there is a similar move by Skandia Administradora de Fondos de Pensiones y Cesantías, another Colombian pension fund manager. Skandia began offering Bitcoin exposure within one of its portfolios back in September 2025, making AFP Protección the second major player in the country to provide such access. Together, these developments signal a cautious but accelerating acceptance of cryptocurrencies among institutional fiduciaries in Colombia’s retirement sector.

The broader context of Colombia’s pension landscape reveals the scale of this shift. As of November 2025, the total mandatory pension fund market in the country stood at 527.3 trillion pesos, with nearly half of those assets already invested internationally. This outward orientation reflects a long-standing strategy to diversify beyond local markets, which the inclusion of Bitcoin exposure extends into the realm of alternative digital assets.

Earlier in January 2026, the country’s tax authority, DIAN (Dirección de Impuestos y Aduanas Nacionales), implemented a mandatory reporting framework for crypto service providers. Under this new regime, aligned with the OECD’s Crypto-Asset Reporting Framework (CARF), exchanges, custodians, and other intermediaries are required to collect and submit detailed user and transaction data. This facilitates automatic exchange of crypto-related tax information with foreign jurisdictions, aiming to enhance transparency and combat tax evasion in the digital asset economy.

While the Bitcoin fund from AFP Protección remains targeted at sophisticated, higher-risk-tolerant investors rather than the general pension population, its launch represents a notable milestone. It highlights how even traditionally risk-averse institutions in emerging markets are beginning to explore Bitcoin as a potential long-term portfolio diversifier amid growing global institutional interest in cryptocurrencies.

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Information Sources:

• Binance
• Kucoin
• Cointelegraph

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