New pension deals show institutions are already in crypto




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New Crypto Pensions Deal Shows Institutionals 'Are Already Here' Crypto Heroes

Cryptocurrency adoption has received another boost from institutional investors after Morgan Creek Digital disclosed that it is the first US financial firm to offer crypto assets for pension funds. According to the company, two pension plans for police officers and state employees in Virginia’s Fairfax County are going to be anchor investors in a new 40 million USD venture capital fund.

Pension funds invested in crypto assets

The employees captured in this pension plan will be looking forward to retirement with potential dividends from Bitcoin. Anthony Pompliano, co-founder and partner at Morgan Creek Digital, believes that institutional investors are already in the crypto sector. He made this known via a tweet yesterday, February 12.

The Virginia pension funds join other institutions to invest in the crypto space, including Yale University, which invested a sizeable amount of its endowment fund in digital assets last year.

According to the announcement, the two pension funds (Police Officers’ Retirement System and Employees’ Retirement System), will collectively manage 1.2 billion USD in assets for the state police force and other employees in the country.

The pension fund has already invested part of the 40 million USD in some crypto companies including Coinbase and Bakkt. Katherine Molnar, chief investment officer of Fairfax County’s Police Officers’ Retirement System, said it is essential to be opportunistic and expressed their excitement to be part of the emerging crypto market.

Morgan Creek’s new fund will start by making seed investments in equity, according to the co-founder Pompliano. They will, however, invest in token-based projects that are liquid, but do not create equity opportunities, while also holding small amounts of crucial cryptocurrencies.

Pompliano revealed that they had to look beyond traditional investment tools such as stocks and bonds due to the numerous struggles facing public pensions in their bid to meet their obligations. He believes that cryptocurrencies and blockchain will offer the solution required to overcome those challenges.

Despite the bear market, cryptocurrencies and blockchain continue to appeal to institutional investors as the potential of the emerging market is discovered. Morgan Creek seems to be a strong believer in cryptocurrencies. Last year, the company bet 1 million USD that crypto assets will outperform the S&P 500 over the next decade.

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