Saturday, December 4

United States Firefighters Pension Fund Acquire USD 25 Million in Bitcoin and Ethereum

The Houston Firefighters’ Pension Fund in the US has acquired $ 25 million worth of Bitcoin and Ethereum. This is one of the first approaches of the country’s public administration to investing with cryptocurrencies.

According to a report by Bloomberg On October 21, the Houston Firefighters Relief and Retirement Fund used the New York Digital Investment Group, or NYDIG, to execute the purchase of $ 25 million in Bitcoin (BTC) and Ether (ETH).

Public records through the Texas comptroller’s office show that the pension fund had more than $ 4.1 billion in total net assets as of June 2020, meaning the group has allocated approximately 0.6% from your portfolio to digital assets.

“We have been studying this as an asset class to add to our investment portfolio for quite some time,” said the fund’s chief investment officer, Ajit Singh. “It became an asset class that we could no longer ignore.”

USD 5.5 billion in invested assets

The Houston Fire Relief and Retirement Fund has a capital of 5.5 billion dollars in invested assets. Those responsible for it said that $ 25 million would be a significant amount to dedicate to digital assets. To acquire the assets, the fund would use the subsidiary NYDIG, focused on the management and purchase of digital assets.

In addition, the HFRRF pension fund manages retirement benefits for more than 6,600 active and retired firefighters and survivors of firefighters. Active firefighters have contributed 9% of their salary to the fund since 2004, and the City of Houston contributed at least double that amount.

Meanwhile, HFRRF’s chief investment officer preferred to invest in currencies directly, rather than take the risk associated with futures-related investments.

He explained, ‘We didn’t want to get the synthetic exposure. We decided to go directly to the tab. As more and more institutional adoptions happen, there will be more and more dynamics that develop for supply and demand. And having physical assets, real tokens, gives us the possibility of generating potential income in the future.

The United States at the forefront with Bitcoin and crypto

Investments in cryptocurrencies by the public administration of different countries is increasingly common in our society. Digital assets are making their way into our day-to-day lives and governments seem to be beginning to assume that they must regularize the assets themselves as well as the situation. The United States is one of the countries that has advanced the most in terms of adoption of digital assets and new use cases are emerging from different local governments.

In fact, one of the most recognized examples of adoption by the US public administration is the city of Miami. The population was a pioneer in the country in accepting BTC as an acceptable payment instrument for administrative tasks such as paying taxes or fees. The mayor of the city himself, Francis Suarez was one of the main promoters of this new system. Now it seems that Houston wants to go the Miami way and embrace digital assets for different functions.