Houston’s firefighters pension fund has allocated part its $4 billion portfolio to crypto.
An Oct. 21 Bloomberg report claims that the New York Digital Investment Group (NYDIG) was used by the Houston Firefighters Relief and Retirement Fund to purchase $25 million in Bitcoin (BTC), and Ether (ETH) according to a Bloomberg report. According to the Texas comptroller, the pension fund had more than $4.1B in net assets as of June 2020. This means that the group has allocated approximately 0.6% of its portfolio for digital assets.
Ajit Singh, chief investment officer of the fund, stated that “we have been studying it as an asset class for our investment portfolio for quite a while.” “It was an asset class that we couldn’t ignore any longer.”
“As institutional adoptions increase, there will be more demand and supply dynamics.” The future holds the potential for income generation by having tangible assets, actual tokens.
This fund provides benefits to more than 6,600 firefighters, retired and active, as well as their surviving families. The fund has more than 50% invested in common equity and private equity, but it also includes stocks and bonds from domestic and international countries, as well as cash and real estate.
Related: Crypto and Pension Funds: Are they like oil and water?
ForUsAll, a retirement plan provider, offered its clients the opportunity to invest up to 5 percent of their portfolio in cryptocurrency. It stated that Americans could be in a “disavantage” if they don’t have the option to access crypto assets through their retirement plans. Grayscale reported earlier this year that it had witnessed pension funds and endowments actively investing in its funds with crypto exposure.
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