Pension funds remain interested in crypto despite crash: WSJ 

Quick Take

  • Pensions across North America who invested in crypto have experienced considerable losses due to the market downturn. 
  • However, a few remain interested in crypto investments, Wall Street Journal reports. 

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.

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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.  

However, not all pension funds can brave crypto's volatility. A $300 billion fund for teachers in California is avoiding crypto payments due to high risk.


© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.