The Houston Firefighters Pension Fund has bought $ 25 million worth of Bitcoin and Ether. The fund, with over $ 4 billion in assets, invested in NYDIG, a bitcoin-focused subsidiary of asset manager Stone Ridge. A spokesman for the two companies confirmed this in an email.

The Houston Firefighters’ Relief and Retirement Fund said the investment took years.

Positive returns

Ajit Singh, a chief investment officer, was delighted with this first step into the world of digital assets. Singh said the new investment has a positive expected return and will manage his risk. It has a low correlation to all other asset classes.

He noted that the new development expresses their belief in the disruptive potential of distributed ledger technology for the development and democratization of value accumulation through disintermediation.

Mr Singh added that they had been analyzing the transformative potential of digital assets for a while. The Fund is excited to have a partner of NYDIG’s caliber guaranteeing efficiency, safety and improved compliance at the start of this incredible journey.

Mainstream adoption of digital assets

In one Press release On Thursday, NYDIG Global Head of Asset Management, Nate Conrad, said the investment marks a turning point for Bitcoin and its position in public retirement insurance. Corresponding Bloomberg, The Houston Fire Department Pension Fund is not the first to adopt digital assets. Two companies in Virginia also bought around two years ago.

According to their website, Houston’s Fund has approximately 7,000 active and retired firefighters and firefighter survivors.

First futures ETF

Bitcoin has seen a rapid rally this week. The surge was driven by the launch of the first exchange-traded futures fund for the currency in the United States. Several analysts were optimistic that this would lead to more mainstream adoption.

The ProShares Bitcoin Strategy ETF launched on the New York Stock Exchange earlier this week. Trading under the ticker BITO, the company already has more than $ 1 billion in assets under management.

Bitcoin hit an all-time high nearby $ 67,000 in this week. However, CoinMarketCap’s data showed it fell nearly 6% to $ 63,103.11 at 11:03 a.m. in New York City. Ethereum, the world’s second largest cryptocurrency, traded a little higher at $ 4,095.

Singh said he prefers direct tokens as opposed to the risks associated with futures-related investments. He said they didn’t want to get the synthetic exposure; Hence, they decided to go straight to the token. The businessman realizes that with the introduction of digital assets by more and more institutions, a greater dynamic for supply and demand will develop. He stressed that owning actual tokens gives the company an opportunity to generate income.

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