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Crypto Investments Gaining Traction Among Pension Funds as per Report

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Crypto Investments Gaining Traction Among Pension Funds as per Report

  • Compared to 23% of pension plans, 80% of high-net-worth people have a favorable opinion.
  • Pension funds usually follow conservative tactics to ensure life savings of retired individuals.

The most recent research from Fidelity Digital Assets indicates that pension funds are becoming more open to the prospect of pursuing crypto asset investment exposure.

At a London event, Fidelity Digital Assets VP Manuel Nordeste saw that investment committees of defined benefit plans and other pension funds are in the initial phases of talking about crypto assets. Cryptocurrency is attracting the attention of small-scale, knowledgeable investors, such family offices and high-net-worth individuals, according to Nordeste.

Conservative Approach

From its 2018 inception, Fidelity Digital Assets has attracted attention from family offices, specialist asset managers, hedge funds, and eventually bigger blue-chip hedge funds, as he reminisced on the company’s early days.

He stated:

“Now, we’re starting to have conversations with the larger, real money institutional investor types, and we’re getting some of those clients, as well as corporates and so on.”

Compared to 23% of pension plans, 80% of high-net-worth people have a favorable opinion of crypto, according to a market study by Fidelity Digital Assets. In addition, over half of those people have put money into digital assets, but a pitiful seven percent of pension funds have done the same.

Because they are either not subject to as many strict investment requirements or have more flexible and easier to understand requirements, smaller enterprises, as Nordeste noted, tend to be more nimble and willing to take risks. Pension programs, on the other hand, are very time-consuming and market-specific.

In order to ensure that the life savings of retirees in the future are protected, pension funds usually follow conservative tactics. Concerns about the hazards of innovative and very volatile assets, which are now part of an unclear regulatory setting have led to this cautious attitude.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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