U.S. county invests $35 million in the VanEck New Finance Income Fund LP

Two Fairfax County pension systems (Virginia, USA) invest $35 million in the VanEck New Finance Income Fund LP.

Investments in the New Finance Income Fund are available to accredited investors. The fund generates income by lending in stablecoins and fiat currencies collateralised by digital assets.

The investments will involve the Fairfax County Employees’ Retirement System (ERS) and the Fairfax County Police Officers Retirement System (PORS).

These entities first invested in crypto assets in 2019, collectively putting $21 million into the Morgan Creek crypto fund.

In a statement to Cointelegraph, ERS investment director Andy Speller clarified that their stake in the VanEck fund would total $25 million. The funds would be transferred from July to September, depending on market conditions.

According to Speller, the firm has already received the first tranches from ERS and PORS of $10 million and $5 million respectively.

“We view this space as a diversifier for our credit/high-yield portfolios and, in particular, during periods of favorable performance with short-term positions (1–3 months),” said Speller.

Regarding current market conditions, he noted that the depth of the crypto industry’s decline does not exceed the comparable drop in other fast-growing sectors. Speller expressed confidence in the long-term outlook, noting that in the future more things will be digitised, including traditional assets themselves.

“These types of markets are shedding weak players and technologies, which is generally a favorable trend,” he added.

Earlier in 2021, the Canadian pension fund Caisse de dépôt et placement du Québec led together with WestCap the Series B funding round for the Celsius crypto lender, worth $750 million.

In June 2022, the structure refused to provide additional funding to the crypto company experiencing a liquidity crisis, according to The Wall Street Journal.

Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analytics.