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Hot Red: Houston Firefighters’ Pension Fund Goes Crypto | Crypto News


The Houston Firefighters’ Relief and Retirement Fund – based in Texas in the United States with $ 5.5 billion in assets in the bank – said it has invested $ 25 million in Bitcoin and Ether.

Through Bloomberg

The Houston Fire Department Pension Fund is tiptoeing into cryptocurrency investing.

The Houston Firefighters’ Relief and Retirement Fund, which has $ 5.5 billion in assets, said it invested $ 25 million in Bitcoin and Ether through NYDIG, a subsidiary of Bitcoin-focused asset manager Stone Ridge.

“I see this as another tool to manage my risk,” said Ajit Singh, chief investment officer of the fund. “He has a positive expected return and he manages my risk. It has a low correlation with all other asset classes.

State and local pension funds are a powerful investment force, overseeing more than $ 5.5 trillion in assets, according to the National Association of State Retirement Administrators. Although as stewards of taxpayer funds, they have been slow to engulf the speculative craze around cryptocurrencies, Houston’s move is not without precedent. Two Virginia pension funds that first bought digital assets two years ago recently announced that they plan to increase their investments by an additional $ 50 million.

While Bitcoin hit new highs on Wednesday and more than doubled since the start of the year, some institutional investors are giving crypto another look. This week’s rally, which pushed Bitcoin above $ 66,000, was fueled by optimism that the launch of the first exchange-traded fund for the currency in the United States would lead to wider acceptance.

Singh said he prefers direct tokens rather than taking the risk associated with investing in futures.

“We didn’t want to get synthetic exposure,” he said. “We decided to go straight to the token. As more and more institutional adoptions occur, there will be more and more dynamics that develop for supply and demand. And having physical assets – real tokens – gives us the potential for income generation in the future. “

The Houston Fund manages the retirement benefits of more than 6,600 active and retired firefighters and their beneficiary families. Since 2004, active firefighters have contributed 9% of their salary to the fund, with the city of Houston contributing at least double that amount.

Singh is confident that crypto investing will pay off.

“We have been looking at this as an asset class to add to our investment portfolio for some time; we looked at it, we analyzed it, ”he said. “It has become an asset class that we could no longer ignore.”


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