A brace of public pension funds is backing a $40 million venture-capital fund established by Morgan Creek Digital which focuses on cryptocurrency investments. This development marks the first ever involvement of U.S. pension funds in the virtual currency investment space.
Pension Funds Anchor $40M Cryptocurrency Investment
Morgan Creek Digital announced on Tuesday (February 12, 2019) the launch of a $40 million cryptocurrency venture fund anchored by two public pension funds.
According to the announcement, the Fairfax County Employee’s and Fairfax County Police Pension Plans are the two largest investors in the fund.
Both pensions manage an asset portfolio worth about $1.2 billion. They are also the first ever public retirement fund to invest in cryptocurrencies, a notable milestone for the burgeoning industry.
Speaking to Bloomberg, Morgan Creek Digital founder, Anthony Pompliano revealed that the fund would invest in blockchain startups and cryptocurrencies. Already, the new fund has investments in notable companies like Bakkt and Coinbase.
Currently, there is no public disclosure of the investment terms, but Pompliano did indicate that the fund is a special purpose vehicle (SPV). Also, reports suggest that apart from equity investments in crypto-based companies, the fund will retain a portion of its value in cryptocurrencies like bitcoin 00.
Institutions ‘Already Here’
Many crypto critics usually never fail to bring up the absence of public pension funds in the virtual currency investment arena. Back in January, JPMorgan analysts repeated the same rhetoric as part of their “Bitcoin is only valuable in a dystopia” narrative.