Texas pension fund becomes the first in the US to buy Bitcoin
The Houston Firefighters Relief and Retirement Fund (HFRRF) has announced the addition of Bitcoin (BTC) to its portfolio. The addition was announced on Thursday (21), according to an article on the Business Insider portal.
As the name implies, the HFRRF is responsible for managing the retirements of firefighters in Houston, the largest city in Texas. Despite being a local fund, the HFRRF made history as it became the first public pension fund in the United States to buy BTC.
In total, the fund acquired $25 million in BTC. The operation was facilitated by NYDIG, a company that provides BTC services to institutional clients. In principle, NYDIG will assist the HFRRF with both purchases and custody of BTCs.
For the custody itself, NYDIG created a private fund on behalf of the HFRRF. It will be this fund that will manage, acquire and hold the assets on behalf of the HFRRF.
Finally, the HFRRF plans to expand the partnership and allow its more than 6,600 beneficiaries to benefit from the company’s services. The pension fund includes active firefighters, retirees and firefighters who survived fires with after-effects.
Nate Conrad, head of asset management at NYDIG, celebrated the decision. According to the executive, the purchase sets a new standard in the way pension funds see cryptocurrencies.
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“This investment represents a pivotal moment for BTC and its place in public pensions. Traditional markets are increasingly aware of how a small allocation to digital assets can have a big impact over time. Now, the HFRRF has a partner in NYDIG who can help them make this a reality,” this view is shared by Ajit Singh, CIO of HFRRF, who views BTC as a risk management tool
. On the other hand, the cryptocurrency should also help the fund to boost returns to pensioners.
“I see this as another tool to manage my risk. It has a positive expected return and manages my risk. It has a low correlation to all other assets”.