The Houston firefighters pension fund has allocated part of its $ 4 billion portfolio to cryptocurrencies.
According to a Bloomberg report on Thursday, The Houston Firefighters Relief and Retirement Fund used the New York Digital Investment Group, or NYDIG, to execute the purchase of $ 25 million in Bitcoin (BTC) and Ether (ETH). Public records through the Texas comptroller’s office show the pension fund had more than $ 4.1 billion in total net assets as of June 2020, which means that the group has allocated approximately 0.6% of its portfolio to digital assets.
“We have been studying this as an asset class to add to our investment portfolio for quite some time,” said the fund’s chief investment officer, Ajit Singh. “It became an asset class that we could no longer ignore.”
He added:
“As more and more institutional adoptions happen, there will be more and more dynamics that will develop for supply and demand. And having physical assets, real tokens, gives us the possibility of generating potential income in the future. “
The fund is responsible for the benefits of more than 6,600 active and retired firefighters, as well as surviving family members. According to the group, more than half of the fund is invested in common and private equity, but also includes domestic stocks, international stocks, bonds, cash, and real estate.
In June, Retirement plan provider ForUsAll gave its clients the option to invest up to 5% of their portfolio assets in cryptocurrencies, saying that US citizens could be at a “disadvantage” if they are not given the option to access crypto assets in your retirement plans. Earlier this year, Grayscale also reported that it had seen pension funds and donations actively investing in its funds with exposure to cryptocurrencies.
Keep reading: