U.S. Public Pension Fund HFRRF Invests in Bitcoin

Watcher.Guru
Source: bitcoinmagazine.com

The Houston Firefighters’ Relief and Retirement Fund (HFRRF) has gone into Bitcoin investment. It announced today that it had bought Bitcoin for its portfolio. So, they become the first public pension fund in America with this type of investment.

“This investment serves a watershed time for bitcoin and its place in public pensions.” said Nate Conrad, global head of asset management at NYDIG. “Fiduciaries are aware of how even a small allocation to digital assets can make a big impact over time. And now, they have a partner in NYDIG who can help them make it happen.” 

Crypto investors have been on a roll lately. Institutions are not letting this opportunity pass them either. Most of them are investing in cryptocurrency to diversify their portfolios. In an example, HFRRF acquired Bitcoin and another crypto for $25 million through NYDIG. In the agreement, NYDIG will also provide custody services. NYDIG has set up a private fund to manage to get and safeguard the assets on behalf of HFRRF.

“I see this as another tool to manage my risk.” Ajit Singh, the chief investment officer for the fund, told Bloomberg. “It has a positive expected return and it manages my risk. It has a low correlation to every other asset class.”

HFRRF to Scale Services to its Members

NYDIG’s bitcoin platform will allow HFRRF to offer its 6,600 benefactors a suite of services. Most of these services promote their access and use of crypto. HFRRF is great for active and retired firefighters alike. In fact, it provides support to survivors of those killed in the line of duty as well.

With this investment, HFRRF members should expect significant benefits. The sale marks the first-ever bitcoin investment by a public pension in the United States. So far, Bitcoin has appreciated against other currencies despite the volatility. 

There is a rush for a piece of Bitcoin and other altcoins. The listing of Bitcoin ETF in the NYSE has significance to most investors. Within a day, it had sold up to $1 billion.