Pension Funds are making their way into crypto for the first time ever.
According to news released from Morgan Creek Digital, two pension plans in Fairfax County, Virginia are part of the $40 million raised for their crypto venture capital fund.
That would mark the first time in crypto's history that pension plans have invested in crypto.
Several other investors in the fund included an insurance company, a university endowment and a private foundation.
The $40 million raised might not sound like a lot upon first glance, but they only set out to raise $25 million and had to cap it at $40 million because it was over-subscribed.
That's what we like to hear!
More about it can be found here:
Why is this important?
If you not familiar, pension funds hold an incredible amount of our nation's wealth.
How much wealth you might be wondering?
Currently, U.S. Pension Funds are said manage roughly $25.4 trillion.
Yes that is trillion with a "T"!
The entire crypto market is worth roughly $120 billion currently.
Do you see why some of that money coming in might be significant?
It only takes a little...
Most likely these pension plans are putting very small amounts into crypto investments, which they should be considering there is a considerable amount of risk involved.
However, if these funds kick start a FOMO type of event where other pension funds start getting involved, they only have to get involved at something like a 1% allocation to make a dramatic impact in the space.
I talked about what a 1% allocation in the macro hedge fund space might look like the other day, well imagine what a 1% allocation in the $25.4 trillion pension fund space might look like!
That would be roughly $254 billion of new capital coming in...
Now that would really get things moving!
Stay informed my friends.
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https://news.bitcoin.com/will-pension-funds-soon-be-investing-in-crypto/
