WSJ reports pension funds maintain interest in Bitcoin

Pension funds remain bullish on digital assets, despite a substantial pullback in prices. The Wall Street Journal reports.

The publication noted that, in the crypto winter, many managers faced a choice — to scale up their investments or close out positions.

In the California Teachers’ Pension Fund (US), the risk parameters for purchasing cryptocurrency were deemed unacceptable.

In the Houston Firefighters’ Relief and Pension Fund in Texas (US), optimism remained. The structure invested $25 million in Bitcoin and Ethereum in October 2021; to date, the investments have halved.

“Volatility was expected,” said Ajit Singh, head of the fund.

A similar view is held by the Fairfax County Police Officers’ Pension Plan (Virginia, US).

“The expected return has now risen. Some investors are wary of investing, given the crypto-winter we have endured,” explained Catherine Molnar, head of the Investment Structuring Department.

In July 2022, Fairfax County police and employee pension funds invested $35 million in the VanEck crypto fund.

These structures first became interested in digital assets in 2019, collectively investing $21 million in the Morgan Creek crypto fund. As of June 30, the book value of the investments had quadrupled.

Back in May 2022, Republican Senator Tommy Tuberville of Alabama introduced a bill to allow Americans to add cryptocurrency to their 401(k) retirement accounts.

Earlier Fidelity Investments announced a service enabling clients to accumulate bitcoins in such products.

Subsequently it emerged that the plans of the US Department of Labor, as well as Senators Elizabeth Warren and Tina Smith, had raised concerns. raised concerns.

In 2020, US pension plans with investments in Bitcoin were launched by DAiM, as well as Bitwage with Gemini.

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