US pension fund for firefighters is expanding portfolio with Bitcoin and ether worth $ 25 million-markets and prices
US pension fund for firefighters is expanding portfolio with Bitcoin and ether worth $ 25 million-markets and prices
The 5.5 billion dollar pension fund for the firefighters of the US city of Houston has announced an investment in Bitcoin and Ether. "This investment is the first announced investment in digital assets by a public pension plan in the USA"
"A turning point for Bitcoin and its place in public pension insurance"
The Houston Firefighers' Relief and Retirement Fund (Hfrrf), the pension fund for the firefighters of the city of Houston, announced on Thursday that he bought Bitcoin and Ether for the portfolio of performance -oriented plan. The announcement describes:
This investment is the first announced investment in digital assets by a public pension plan in the USA
The pension fund HFRRF manages the pension of more than 6,600 active and retired firefighters and survivors of firefighters. Active firefighters have paid 9 % of their salary into the fund since 2004, with the city of Houston contributing at least twice the amount of this amount.
"We are happy to take this first step into the world of digital assets," commented Ajit Singh, Chief Investment Officer from Hfrrf. He stated:
We have been investigating the transformative potential of digital assets for some time ... It has been an investment class that we could no longer ignore.
he continued: "This investment expresses our belief in the disruptive potential of distributed Ledger technology for the development and democratization of the increase in value through Disintermediation."
Singh was also quoted by Bloomberg with the words: "I see this as another instrument for controlling my risk ... It has a positive expected return and controls my risk. It has a low correlation for any other investment class."
The Chief Investment Officer from Hfrrf preferred to invest directly in coins instead of taking risks related to futures-related investments. He explained: "We did not want to get the synthetic exposure. We decided to go directly to the token. Since more and more institutional adoptions are taking place, there will be increasing dynamics for supply and demand. And physical assets - actual tokens - will give us the opportunity to generate an income potential in the future."
Nate Conrad, Global Head of Asset Management at Nydig, said:
This investment is a turning point for Bitcoin and its place in public pension insurance. Trustee is increasingly aware that even a small assignment to digital assets can have great effects over time.
Do you think that more public pension funds will buy Bitcoin and other cryptocurrencies? Let us know in the comment area below.
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