Altcoin News: Two Pension Funds in the US Invested in a Blockchain Fund with a Capital of $40 Million

February 13, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The arrival of institutional capital in the cryptocurrency market becomes not just rumors and expectations, but a reality. Yesterday, institutional-oriented asset manager Morgan Creek announced that two public pension funds from the United States of America have invested in its new blockchain fund with a capital of $40 million.

“As far as we know, nobody has raised money from a public pension,” Anthony Pompliano, said partner Morgan Creek, Anthony Pompliano.

Institutional players took part in financing the new venture: the Pension Fund for Police Officers and the Pension Fund for Employees in Fairfax County, Virginia. In addition to the above funds, their own money was also invested: a university fund for endowment, one private fund, an insurance company, and representatives of the health care system.

“Blockchain technology is being applied in unique and compelling ways across multiple industries,” Katherine Molnar, the chief investment officer of the Fairfax County Police Officer’s Retirement System, said in a press release. “We feel it is important to be opportunistic and are excited to participate in this emerging opportunity, due to the attractive asymmetric return profile that it represents.”

According to the latest financial statements, the Pension Fund of Police Officers is in the order of $1.45 billion, and the State Employees Pension Fund owns assets of $4.25 billion. Pompliano said that although the funds are located in one geographical region, each of them has its own assets and investment ideas.

The main goal of the Morgan Creek fund is to acquire a stake in new startups at the initial fundraising stage. They will also invest in projects with his own tokens that do not “sell shares”, but have a cash flow and are in line with Regulation D of the US Securities and Exchange Commission (SEC). Recall, according to provision D, cryptocurrency companies have the right to sell securities, freeing themselves from traditional requirements, but observing others, for example, only accredited investors are allowed to invest. The Morgan Creek Foundation will also hold small amounts of key cryptocurrencies.

Pompliano noted that the funds are trying to find an opportunity to diversify risks outside traditional markets, preparing to fulfill their obligations in the coming years.

“We provide them with the best conditions for eliminating risks by investing in an emerging and fast-growing industry,” he said.

Commenting on this news, The Next Web noted that the fund’s investors had previously had experience of working with companies from the blockchain industry, including Bakkt, RealBlocks, CityBlock Capital, Digital Assets Data, Blockfi, Harbor, Namebase, Coinbase, Open Finance Network, Good Mone.

“We are proud to partner with these investment professionals who have shown an ability to be forward-thinking and innovative,” Pompliano finished.

Author: Marko Vidrih