Despite the bear market, interest in crypto is growing in retirement funds in North America, according to the Wall Street Journal.
According to the Wall Street Journal, the growing interest in crypto pension funds has also been reflected in VanEck. However, the difficult market conditions in 2022 brought the question to investors’ minds whether they should accept the loss and move on or continue their investments.
Pension Funds Valuing Money in Crypto
The Houston-based pension fund for firefighters invested $25 million in Bitcoin (BTC) and Ethereum (ETH) last October, but lost almost half of that money due to market conditions. Although the value has been lost, they have learned how to invest in this market as a logic.
In an interview with The Wall Street Journal, Ajit Singh, investment chief for the Houston Firefighters’ Benefit and Pension Fund, said:
“Volatility and large fluctuations are expected in the cryptocurrency market.”
Other pension funds see the bear market as an opportunity. With fewer people willing to invest in crypto in the crypto winter, the returns are more attractive, the investment chief for a Virginia-based pension fund told the Wall Street Journal. This pension fund for cops at Fairfax holds $6.6 billion for nearly 30,000 people and invests 4.5 percent of its assets in cryptocurrency.
On the other hand, not every pension fund institution is brave against the volatility of crypto money. A fund organization with $300 billion for teachers is avoiding crypto investment.
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