Pension funds eye crypto investments


While traditional pension funds have shied away from crypto, some are taking the plunge, including the Texas Firefighters‘ Relief and Retirement Fund and the Australian Queensland Investment Corporation. The fund invested $25 million in bitcoin and ether, a total of 0.5% of its total portfolio. The investment represents an unusually high stake for such a historically conservative fund. But it could be an indicator of what’s to come, as pension funds collectively control trillions of dollars in global assets.

However, some pension funds are taking the plunge, and not just because the prices are high. Some have already diversified their portfolios to include Bitcoin and Ethereum. But others have been hesitant to invest in cryptocurrencies, citing concerns about regulation and price. In Canada, the Caisse de depot et placement du Québec, for example, has invested in Celsius Network and a variety of crypto-related companies.

Other funds aren’t as hesitant. The Fairfax County Police Officers Retirement System has steadily increased its allocations to digital currencies. The fund allocated $1.4 billion to Morgan Creek Digital Fund III, and another $500 million to Blockchain Capital. It is also deploying capital to develop the technology infrastructure that will enable the crypto market to grow. It isn’t just retail investors who are buying cryptocurrency. It’s also the largest retirement fund to make such investments.