[ad_1]
Fairfax County, Virginia, has targeted a portion of its pension fund on investments in the bitcoin and cryptocurrency industry, as well as on blockchain technology in general. Now, they explain why.
Fairfax County Pension Systems Director Jeff Weiler has published an article in response to comments from CCN and other media on the county's decision to invest in Morgan Creek's latest blockchain opportunity fund. Unsuspected of $ 25 million, the fund invests in blockchain companies. He raised $ 40 million from two pension plans in Fairfax County and other institutions.
Less than 1% of the two pension funds allocated to Crypto Ventures
Source: Fairfax County Police / Facebook
First, the publication gives details of the amounts invested. In total, the Virginia pension system has injected $ 21 million into the fund. $ 10 million comes from the county employee pension fund and $ 11 million from the police fund. They represent respectively 0.3% and 0.8% of the total badets of the funds.
The intention of the Post is to ease the concerns of retirees. As CCN has made it clear, the game is not strictly a Bitcoin purchase. Instead, Morgan Creek will use the fund to invest in blockchain companies such as Coinbase and Bakkt, among others. The value of cryptocurrencies has less impact on trade. They earn commissions regardless of market direction, making them "safer" investments. However, as Weiller notes:
"All investments involve risk and this investment is no different. However, as with any investment, the Fairfax investment team determined that the expected returns from this investment were consistent with the level of risk incurred. This has also played a big role in the amount of investments. "
The Blockchain Opportunities Fund could invest up to 15% in Crypto
That said, Morgan Creek has managed to convince pension supervisors and others that up to 15% of the fund. should be directly invested in cryptocurrency. Weiller says:
"Not more than 15% of the funds will be invested in real cryptocurrencies and, to date, the fund is not exposed to any cryptocurrency."
The current bear market could make it seem like a risky game. But Morgan Creek can map the stormy seas. A mere $ 5,000 recovery would generate a return of more than $ 1.9 million on a $ 5 million investment in Bitcoin. Such a recovery is far from out of the question, after all.
Anthony Pompliano of Morgan Creek estimates that Bitcoin could still fall below $ 3,000 before the bear market has reached its target, which is probably why the fund has not yet bought.
Bitcoin is considered by many, including Barry Silbert, to be the true "digital gold". Gold is one of the many long-term badets that pension plans seek to be exposed to in order to hedge long-term market chaos. The Morgan Creek Blockchain Opportunities Fund is the first of its kind, but it is unlikely to be the last. This is the market for cryptocurrency buyers for the moment. The next cycle of expansion could surpbad all precedents, along with the uptrend of 2017.
The entry of such a currency raises an existential problem: it will have to realize its gains. Purchases in such scenarios will generally have sales objectives. Holding Bitcoin forever will not be an option, which means that, depending on the amount of money entered in this way into the crypto-economy, badysts might have a new measure to take into account to determine chip performance. .
Featured Image of Fairfax County Police Service / Facebook
[ad_2]
Source link
