Houston Firefighter Pension Fund has stated that it made some significant funding into the crypto space, another signal that retirement investments are taking crypto assets critically despite regulatory concerns.
The Houston Firefighters’ Relief and Retirement Fund announced on Thursday, October 21, that it bought $25 million worth of Bitcoin and Ethereum by way of the assistance of NYDIG (New York Digital Investment Group).
The fund, which has $5.5 billion in assets under management, said that it has been managing the funding for several years now.
Ajit Singh, the chief investment officer at Houston firefighter pension fund, talked in regards to the growth and expressed belief in the disruptive potential of cryptocurrencies. He said: “Now we have been studying this as an asset class to add to our funding portfolio for quite a while. It turned an asset class we couldn’t ignore anymore.”
Singh confirmed his confidence that the cryptocurrency funding will pay off, stating that: “I see this as another tool to handle my risk. It has a constructive anticipated return and it manages my risk. It has a low correlation to each different asset class.”
Singh said that they preferred investing in direct tokens, and that explains the reason why the Houston firefighter pension fund invested in actual cryptocurrencies, instead of taking on risks associated with futures-related investments.
“We didn’t need to get the synthetic exposure. We determined to go directly to the token. As increasingly more institutional adoptions occur, there will likely be increasingly more dynamics that develop for provide and demand. And having physical assets — actual tokens — provides us in the future the possibility of income generation potential,”
Houston firefighter pension fund is responsible for managing the advantages of more than 6,600 energetic and retired firefighters as well as survivors of firefighters.
According to the group, more than half of the fund is invested in common and personal equity, but additionally contains real estate, domestic stocks, money, bonds, and international shares.
Retirement Funds See Interest
In line with the National Association of State Retirement Administrators, public pension funds oversee about $5.5 trillion worth of assets.
The Houston firefighter pension fund isn’t the first to enter into the cryptocurrencies, two pension funds in Virginia State bought crypto investments some two years in the past and lately talked about they’re planning to increase their investments by one other $50 million.
As reported in February 2021, California Public Employees’ Retirement System (CalPERS), the largest U.S. public pension fund, elevated its stakes in RIOT blockchain, a Bitcoin mining firm. The California-based public pension fund, priced at practically $450 billion, first purchased 16,907 RIOT shares during Bitcoin’s 2017 bull run.
In June, retirement plan provider ForUsAll offered an option to its clients to take a position as much as 5% of their portfolio assets in cryptocurrencies, stating the US citizens might be disadvantaged if they don’t seem to be given the choice of accessing cryptocurrencies in their retirement plans.
Grayscale Investments also said this year that it has witnessed a rising variety of pension funds and endowments actively investing their funds to get exposure to cryptocurrencies.
Source: Blockchain News
