Virginia pension funds the Fairfax County Police Officers Retirement System and Fairfax County Employees' Retirement System are planning to put as much as $50 million in cryptocurrencies, Bloomberg has learned. The funds are reportedly pending for board approvals to invest in cryptocurrencies through Parataxis Capital Management's fund focused on the crypto market.
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"It is an area that’s going to grow in adoption and interest. We think that it is inefficient enough, so we think there are some alpha opportunities to take advantage of," said Katherine Molnar, Chief Investment Officer for the Police Officers Retirement fund.
The interest of pension funds in backing the crypto space is not new. In January this year, a cryptocurrency-focused investment firm, Grayscale Investments, said that pension funds and endowments were showing interest to continue the crypto rally.
Grayscale Investments CEO, Michael Sonnenshein, said the size of institutional' allocations was also growing rapidly. He noted that the firm had started to see participation not just from the hedge fund segment, which it had long seen participation from, but also from other institutions, including pensions and endowments.
Later, in June, Cynthia Lummis, a US senator from Wyoming and bitcoin (EXANTE: Bitcoin) supporter, said that the cryptocurrency should be considered as a way to diversify retirement and long-term savings. The senator also revealed she owned approximately 5 BTC and that the first time she bought the cryptocurrency its price was around $330.
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