US pension funds to bolster yields through asset farming

Pension funds in Fairfax County, Virginia, may increase their exposure to the crypto industry by participating in an asset-yield farming strategy. This was stated by the system’s CIO Catherine Molnar, according to Bloomberg.

To that end, two crypto-focused hedge funds could receive financing.

Pension funds have already invested in structures focused on illiquid tokens at an early stage, as well as volatility trading. The latter includes various strategies, including asset farming, basis trading and cross-exchange arbitrage.

“Rather than fear volatility, we seek to harness it. It is employed in relative-value strategies. Our expected return is 9-11% in one strategy and slightly higher in the other,” she explained Molnar.

According to the official, asset farming could deliver APY ranging from 4% to 1000%. She sees it as an alternative to fixed-income instruments and the potential for higher returns compared with rate-sensitive assets.

Earlier, Fidelity Investments plans to provide clients with возможность аккумулирования биткоинов on 401(k) retirement accounts with the consent of their employers.

The initiative has drawn concerns from the U.S. Department of Labor, though officials stressed that не запретят подобный продукт.

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