Investments made by pension funds have suffered substantial losses due to the market downturn, and this is especially true for pension funds. It is in North America where the greatest interest in the cryptocurrency market is seen.
Fund managers concerned regarding the future of American workers have found themselves at a crossroads that has forced them to think hard.
Poor conditions and large market losses this year have forced pension fund managers to consider whether to double down on their investments in cryptocurrencies or turn their sights to other assets.
Funds have chosen to gain exposure and double down on cryptocurrencies for two main reasons, firstly because when the market picks up once more, this asset will tend to perform much better than the stock market. , and second because, following nearly a year of a bear market, now may be the time.
Pension fund investments in cryptocurrencies
Last fall, the pension fund in Texas invested $25 million in crypto, specifically Bitcoin and Ether, and despite losses amounting to half face value, it did not give up.
The Texas fund Ajit Singh, has invested 5 billion dollars as reported in an article by WSJdespite the volatility and the fact that the market is not currently playing in their favor, this choice will pay off in the long run.
In a world so interconnected but also so diverse, not all analysts agree with the overexposure to digital currencies, proof of which is the $300 billion fund for teachers in California which has vetoed investments in crypto -currencies due to the massive risk, at least in this period and with this current legislation.