American pension funds are not losing interest in cryptocurrencies. In the middle of the bear market, pension funds say they have no regrets about having invested last year, despite significant losses. Some organizations even claim that the market crash is a great opportunity.
Pension funds confirm their interest in cryptocurrencies
During the bull run, many pension funds have invested in cryptocurrencies. This is particularly the case of Rest Super, one of the largest pension funds in Australia, or KiwiSaver, a fund from New Zealand. Same story in the United States.
Faced with the bear market, the funds that invested during the explosion in prices recorded significant losses. As our colleagues from the Wall Street Journal report, American pension funds are not giving in to panic.
Ajit Singh, Chief Investment Officer of Houston Firefighters’ Relief and Retirement Fundthe Houston firefighters’ pension fund, says it anticipated the possibility of a market crash:
” Of course, we would have preferred otherwise, but volatility and large swings were expected ».
As a reminder, the pension fund, which manages the savings of 7,000 current and retired firefighters, has invested $25 million in Bitcoin (BTC) and Ether (ETH) in October 2021, shortly before the market high. Last November, Bitcoin indeed approached $70,000, triggering an explosion in the value of most altcoins.
Ajit Singh clarifies that the pension fund’s cryptocurrency investments are long-term investments. The manager never planned to resell the digital assets in the short term. Rather, the currencies will be held for a period of three to five years. While confirming its interest in the crypto-asset sector, the pension fund does not intend to inject money into it again for the moment.
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The bear market, an opportunity
Other pension funds go so far as to see the bear market as an opportunity. The funds of the police officers and employees of Fairfax indeed estimate that it is time to invest in cryptocurrencies. Catherine Molnar, chief investment officer of the fund, explains to the Wall Street Journal:
“Yields are more attractive right now as some people are less willing to get into it given the crypto-winter the market is going through”.
The manager approached two investment funds, VanEck and Parataxis Capital, to inject $70 million over three years into cryptocurrencies. The Fairfox police fund has allocated 4.5% of its holdings to crypto-assets, compared to 2.5% for the county employee fund. The two organizations manage a total of $6.6 billion and have 30,000 beneficiaries. At the same time, some structures nevertheless continue to consider crypto-investments as too risky. This is the case with the California State Teachers’ Retirement Fund.
👉 On the same theme: Crypto-crime down in 2022 – A consequence of the bear market?
Source: Wall Street Journal
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