Pension Funds Investing in Cryptocurrency
This week, it was announced that two US pension funds are investing in the blockchain. We could not pass by the news which excited the public. E-CHAT experts have made their own analysis of the current situation.
Despite the importance of this news, we think that it will have an impact only in the long term. Throughout 2018, various blockchain experts predicted quick market growth, but their predictions were not fulfilled. Therefore, we are very attentive when forecasting.
The news is certainly significant, but the reaction to this news in the media is exaggerated. Our team believes that this is a positive sign, as institutional participation in the market is increasing.
However, if you take a look at the issue thoroughly, you will notice that, in fact, the investments were not in the crypto assets, but in the blockchain-startup - a venture capital fund. According to the charter, 15% of its assets may consist of cryptocurrencies, but currently, this startup does not have such assets in its portfolio at all.
Plus, the invested amount was $21 million which is insignificant, in general. Thus, only 15% ($3 million) of which could be hypothetically allocated to the cryptocurrency fund. Therefore, speaking about the market as a whole, this is a drop in the bucket.