Pension Funds See Bear Crypto Market As An Opportunity For Further Investment
Despite losses from the bear crypto market, North American pension funds remain optimistic about cryptocurrencies, according to the Wall Street Journal. This interest is reflected in the investment firm VanEck, according to the WSJ. However, depressed market conditions in 2022 have left pension fund managers wondering if it is worth doubling down on their cryptocurrency investments.
The Houston Firefighters Pension Fund invested $25 mln in bitcoin and ether last October but lost more than half the value due to the bear market. However, the management of the $5 bln Houston fund understands the nature of their investments and is prepared for volatility and large market fluctuations.
The Virginia pension fund in benefiting police in Fairfax holds $6.6 bln for about 30,000 people and 4.5% of their assets are held in cryptocurrency. However, not all pension funds are ready to withstand the volatility of cryptocurrencies. A $300 bln California teacher fund avoids cryptocurrencies due to high risk.
Image: Boston University