With the expansion of the cryptocurrency market, several pension funds are also becoming interested in BTC and other virtual currencies. This time, the Houston Firefighters’ Relief and Retirement Fund decided to invest in BTC and Ethereum, the two largest cryptocurrencies in the world. It is one of the first pension funds to invest in digital currencies.
Houston Pension Fund invests in BTC
The Houston Fire and Rescue Fund, a pension fund that manages more than $ 5.5 billion in assets, has decided to invest $ 25 million in BTC and ETH. With this step, the pension fund thus gains exposure to virtual currencies.
The decision of the Houston Firefighters’ Relief and Retirement Fund shows that there is great interest in virtual currencies. In addition, it will be one of the first pension funds to start investing in digital currencies.
The Houston Firefighters Pension Fund has purchased BTC.
Eventually every pension fund will.
– Pump 🌪 (@APompliano) October 21, 2021
The reason why he decided to take this step is obvious. We are currently experiencing a situation where, on the one hand, the market has been dominated by low interest rates and, on the other, we are seeing high inflation. This is the worst combination (not only) for pension funds, which in many cases could lose out against inflation.
BTC and its potential
BTC and other digital currencies seem to be a suitable alternative investment that could bring pension funds better returns in the long run. Let’s not forget that BTC climbed from $ 3,180 in December 2018 to more than $ 66,000 in October 2021. This represents a 1,975% price increase in just a few years.
Some experts believe that at the current rate of adoption of BTC and in view of future trends, it is very likely that BTC will not only reach a price of USD 100,000, but will exceed even higher levels (around USD 250,000). Pension funds thus have an alternative investment at their disposal, which currently has the potential to outperform most traditional investments.
For an aging population that is retiring, it is important for them to know that their future is protected, not devalued. Inflation expectations in the US are at their highest level in more than a decade. This may also be one of the reasons why pension funds are looking for new investment opportunities that would bring better results to their investments.