The massive declines in cryptocurrencies since the beginning of May could not prevent the rise of crypto-based pension funds in the US. According to the news of the Wall Street Journal from the US media; Institutions managing such funds in the North American region still have a “bullish” view of cryptocurrencies…
“Let’s go out or double it”
In the news in WSJ, it was stated that the increase in interest was also reflected in the asset management firm VanEck, while fund managements either completely exited cryptocurrencies or made investments due to the large declines experienced since May.
It has been written that they are considering increasing it by 2 times. It was reported in the news that a firefighters pension fund in Houston, which manages a $5 billion fund and invested $25 million in Bitcoin and Ethereum last year, is not worried about the volatility experienced. Speaking to the newspaper on behalf of the fund management, Ajit Singh said, “We know what volatility and big changes are. This was within our expectation,” he said.
“Bear season is an opportunity for us”
A Virginia-based pension fund managed for cops sees the recent declines in cryptocurrencies as a buying opportunity. While the news report states that Fairfax fund is managed on behalf of 30,000 people and has a total assets of $ 6.6 billion, the investment manager of the fund told WSJ, “It is much more attractive to have the chance to increase investments and double the level of income for the future”. It was stated that the fund invested 4.5% of its total assets in cryptocurrencies.
But not all funds see cryptocurrencies as an opportunity. It was also among the information given in the news that a full $ 300 billion pension fund managed for teachers in California did not allow crypto money investments on the grounds that it contained high risk.
Ministry of Labor official said “Dangerous”
As it will be remembered, Fidelity, one of the largest providers of investments in the USA, which is one of the retirement savings types and also known as the 401(k) plan, started to allow participants to convert some of their portfolios to Bitcoin. An official from the US Department of Labor said that such an investment would endanger the financial security of American citizens.
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