The Houston Firefighter Pension Fund has committed a portion of its $4 billion cryptocurrency portfolio.
According to a Bloomberg report on Thursday, the Houston Relief and Retirement Fund used the New York Digital Investment Group, or NYDIG, to purchase $25 million in Bitcoin (BTC) and Ether (ETH). Government records through the Texas Console office show that the pension fund had net assets of more than $4.1 billion as of June 2020, meaning the group had set aside approximately 0.6% of its portfolio for digital assets.
“We have been looking at this asset class for some time to add to our investment portfolio,” said Ajit Singh, the fund’s chief investment officer. “It has become an asset class that we can no longer ignore.”
“As more and more institutional adoptions take place, there will be more and more dynamism in supply and demand. Having physical assets – physical tokens – gives us the opportunity to generate income in the future.”
The foundation is responsible for providing benefits to more than 6,600 active and retired firefighters and their surviving family members. According to the group, more than half of the fund is invested in equities and private equity, but it also includes domestic and international stocks, bonds, cash and real estate.
On the topic: Cryptocurrencies and Pension Funds: Do you like oil or water or not?
In June, retirement system provider ForUsAll gave its clients the opportunity to invest up to 5% of their portfolio assets in cryptocurrency, noting that US citizens could be “at a disadvantage” if they do not have access to cryptocurrency after retirement. plans. Earlier this year, Grayscale also reported that pension funds and trusts have actively invested in crypto-related funds.