Report: U.S. Firm Attracts First Pension Fund Investment in Crypto







U.S. firm Morgan Creek Digital’s new $40 million investment fund has attracted investment from two Fairfax County, Virginia pension plans, according to a February 12 report from Bloomberg. In a statement, the company noted that the fund’s investors also include “an insurance company, a university endowment, and a private foundation.”

As Bloomberg noted in its report:

Fairfax County Retirement Systems manages three separate defined benefit plans, two of which invested in the Morgan Creek Digital fund, said [Morgan Creek Digital founder] Pompliano. Katherine Molnar, chief investment officer of one of the funds, said in a statement that blockchain technology, which was first developed to record the movement of Bitcoin, is an “emerging opportunity” that offers an “attractive asymmetric return profile.’’

Pompliano explained that the fund enjoys the same type of structure seen in more traditional venture capital funds, and that “liquid cryptocurrencies” like Bitcoin will only make up a small portion of its holdings. He said that the fund will also be invested in the equity of blockchain and crypto asset firms.

While many institutional investors have continued to be hesitant about jumping into crypto investments amid the current price uncertainty, Pompliano suggested that a long-term outlook is needed to identify potential returns:

“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.’’

Author: Walter Windthrop

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