• Japan's state pension fund to explore bitcoin as a potential portfolio diversification tool.

• The plan, however, does not promise a foray into bitcoin.

Japan's state pension fund, the world's largest, is seeking information on bitcoin {{BTC}} as it considers options for portfolio diversification in response to changes in society, the economy and technology.

The Government Pension Investment Fund (GPIF), which has $1.4 trillion in assets under management, requested data on potential investment diversification tools such as bitcoin and precious metals like gold, which the company considers illiquid and does not currently hold, it said Tuesday.

For the time being, GPIF invests in domestic bonds, domestic stocks, foreign bonds, foreign stocks, private equity, real estate and infrastructure. While the pension fund is seeking information about bitcoin, there's no guarantee it will choose to invest in the world's largest cryptocurrency once the evaluation is completed.

The fund is seeking basic information, including academic studies, analytical tools and indexes "including investment examples, investment philosophy, how to incorporate into the portfolio of pension funds," it said.

Some pension funds, like the Houston Firefighters pension fund and South Korea's National Pension Service, already invest in bitcoin and crypto-related assets. Crypto proponents have long hailed bitcoin as an ideal investment for pension funds, citing a low correlation with traditional assets. The cryptocurrency, however, has tended to move in lockstep with technology stocks over the years.

The announcement comes weeks after the Japanese cabinet signed a bill allowing venture capital firms and investment funds to hold crypto assets. The bill has yet to be passed by parliament.