Pension funds managing public officials’ retirement savings is one sector that was affected by the crypto crash as per a Wall Street Journal report.
For instance, last year, a Quebec pension fund invested an equity of $150 million in Celsius Network, the same crypto lending firm which filed for bankruptcy in July.
In a similar instance, a $5 billion retirement fund for Houston firefighters had reportedly invested $25 million into Bitcoin and Ether. But the recent crypto crash has only made it worse for them!
Houston Firefighters’ Relief and Retirement Fund investment chief Ajit Singh commented, “Of course we would have preferred otherwise”. Singh further added that “..but volatility and large swings are expected.”
Mr. Singh revealed that the fund views its crypto holdings as a long-term investment, and intends to hold them for three to five years. The investment was made via bitcoin company NYDIG.
Interestingly, even the crypto crash has not managed to completely take away the firefighters’ pension fund’s ‘crypto optimism’ as it still remains interested in crypto as per Singh. However, the fund isn’t making any extra investments as of now.
As for other pension officials, they have a different viewpoint towards the crashing crypto prices and instead found an attractive entry point.
For example, an investment chief of a Virginia-based pension believed that yields are more appealing with fewer people intending to invest in crypto during the recent crash. The Virginia based pension fund serving police in Fairfax has $6.6 billion for nearly 30,000 individuals and holds 4.5% of their assets in cryptocurrency.
