Two US Pension Funds to Invest $21 Million in Blockchain Companies
Two pension funds from Fairfax County contributed $21 million in the newly created Morgan Creek’s venture capital, which is investing money in the crypto companies.
announced the creation of a new $40 million venture capital fund. The anchor investors were the employees' and policemen's pension fund in Fairfax County, Virginia. Together they invested more than half or $21 million.Earlier this week, crypto investment company Morgan Creek
Although this amount may seem large, it occupies a very small share in the assets of pension funds. Jeff Weiler, the Fairfax pension system executive director, said the employees' fund invested only 0.2% of its assets in Morgan Creek, and police fund allocated only 0.8% of all its assets.
The pension system explained such a move by the fact that the crypto industry is at an early stage of development and poses many risks. Therefore, in order to secure the money of citizens, investments made up only a small fraction of the assets. Nevertheless, Weiler argues that the profitability of crypto investments is “in line” with the level of risk.
Weiler also said that the authorities conducted due diligence of Morgan Creek before investing money.