With the expansion of the cryptocurrency market, various pension funds are beginning to take an interest in Bitcoin (BTC) and other virtual currencies. This time, the Houston Firefighters Relief and Retirement Fund decided to invest in Bitcoin and Ethereum, the two largest cryptocurrencies in the world. It is one of the first pension funds to invest in digital currencies.
Houston pension funds invest in Bitcoin (BTC)
The Houston Firefighters Relief and Retirement Fund, which manages more than $ 5.5 billion in assets, decided to invest $ 25 million in BTC and ETH. This would allow the pension fund to gain exposure to virtual currencies.
The decision of the Houston Fire Relief and Retirement Fund shows that there is great interest in virtual currencies. Furthermore, it may be one of the first pension funds to start investing in digital currencies.
One of the main reasons may be related to the fact that we currently live in a situation of low interest rates and high inflation. This is therefore the worst combination for pension funds, which may lose out to inflation in some cases.
Bitcoin and digital currencies are emerging as an alternative investment that could provide pension funds with better long-term returns. Let’s not forget that Bitcoin went from $ 3,180 in December 2018 to over $ 66,000 in October 2021. That represents a 1.975% price increase in just a few years.
Some experts believe that with current Bitcoin adoption and future trends, it is possible for Bitcoin to hit $ 100,000 and break even higher levels (nearly $ 250,000). This gives pension funds an alternative investment that has the potential to outperform most traditional investments at this time.
For an aging and retiring population, it is important for them to know that their future is protected and not undervalued. Inflation expectations in the United States are at their highest level in more than a decade. It can also be one of the reasons why pension funds are looking for new investment options that bring better results to their investments.
Bitcoin is currently trading at around $ 61,000 and its market value is $ 1.15 trillion. This makes Bitcoin the largest cryptocurrency in the world. BTC is followed by Ethereum, which has a market valuation of $ 477 billion and can be bought on the market for $ 4,040 per coin at the time of writing.