Despite losses from the bear market, pension funds across North America remain bullish on crypto, according to Wall Street Journal.
That interest is reflected in asset management firm VanEck, WSJ reports. However, depressed market conditions of 2022 have made pension fund managers consider whether to double down on their crypto investments or walk away.
One pension fund for Houston-based firefighters put $25 million into bitcoin and ether last October but lost more than half the value due to the bear market. Still, leadership in the $5 billion Houston fund understood the nature of their investment. “Volatility and large swings are expected,” Houston Firefighters’ Relief and Retirement Fund investment chief Ajit Singh told WSJ.
Other pension funds see the bear market as an opportunity for further investment. Yields are more attractive with less people willing to invest in crypto during the crypto winter, an investment chief of a Virginia-based pension fund told WSJ. This pension fund in benefiting police in Fairfax holds $6.6 billion for roughly 30,000 individuals and holds 4.5% of their assets in cryptocurrency.