US Public Pensions Invest in $40M Cryptocurrency Fund for the First Time Ever

US Public Pensions Invest in $40M Cryptocurrency Fund for the First Time Ever

cryptocurrency investments

According to a recent report, Morgan Creek Digital has launched a 40 million dollars venture-capital fund which is aimed at cryptocurrency investments. The project is been supported by a brace of public pension funds and it marks the first time the U.S pension funds will be involving itself with cryptocurrency investment.

Morgan Creek Digital

The report revealed that Morgan Creek Digital established a $40 million virtual currency venture fund which is been anchored by two public venture funds – Fairfax County Employee’s and Fairfax County Police Pension Plans.

These two pension funds manage an asset portfolio which is valued at almost $1.2 billion and they are also the first public retirement fund to invest in virtual currencies thereby reaching a milestone in the growing industry.

While giving a statement, Anthony Pompliano, Morgan Creek Digital founder, made it known that the fund will invest in blockchain companies and cryptocurrencies. Currently, the new fund already has investments in well-known startups such as Coinbase and Bakkt.

Also, the terms of agreement for the investment has not been released. However, Pompliano said that the fund is a Special Purpose Vehicle (SPV).

Further updates have revealed that apart from equity investments in crypto-assets companies, the fund will keep a part of its worth in virtual currencies like bitcoin.

For the industry as a whole, the two public funds investing in virtual currencies signifies profound ramifications because, for critics, pension funds investing in cryptocurrency suggests manipulation, lack of security, volatility, amongst others.

A Major Win for the Industry

Late last year, Morgan Creek Digital partner sort out public pension funds to turn towards the virtual currency and blockchain technology market.

“There’s a belief in the institutional world that if the industry will be around for a long time, it will be very valuable. The smart money is not distracted by price but looks at the long-term trends, and believes they’re betting on innovation as a great way to deliver risk-mitigated returns.” Pompliano explained.