First-Ever BTC Investment By A US State Pension Fund
The Houston Firefighters’ Relief and Retirement Fund (HFRRF), the retirement fund for Houston’s firefighters, revealed today that it had acquired BTC for the defined company pension plan’s holdings This makes it the first publicly declared investment in BTC by a public retirement fund in the United States. According to Nate Conrad, international director of wealth management at NYDIG, “this transaction signifies an important milestone for Bitcoin and its position in public pensions.”
He went on to state: “Fiduciaries are becoming fully mindful of how even a little investment in crypto-assets may have a significant impact over time, and they now have a collaborator in NYDIG who can assist them in putting that awareness into action,” Bloomberg reported that the HFRRF purchased Bitcoin and another Altcoin for a total of $25 million. The transaction was handled by the corporate Bitcoin service company NYDIG, which will also offer custodial solutions to the pension fund.
NYDIG’s Role In The Bitcoin Operations
NYDIG has established a private fund that will administer acquired funds on account of the HFRRF. Bloomberg quoted Ajit Singh, the firm’s portfolio manager, as saying: “I see this as yet another instrument to help me control my risk.” “I like it since it has a good expected value and it helps me control my risk. Every other investment vehicle has a weak correlation with it,” says the analyst.
HFRRF intends to continue to develop its cooperation with NYDIG. This is to provide its more than 6,600 patrons with access to the spectrum of Bitcoin-focused benefits rendered by NYDIG’s full-stack infrastructure in the future. Current and former firefighters, as well as relatives of firefighters, are among the HFRRF’s benefactors.
With this purchase, HFRRF has made the very first cryptocurrency investment by a government pension in the United States. This has the opportunity to boost members substantially in the long term if Bitcoin persists to appreciate compared to the Dollar in the same manner as it has for the duration of its existence.
NYDIG Requested Approval Of A Bitcoin ETF
NYDIG, a Bitcoin-focused consulting firm, applied with the SEC in February to create a Bitcoin ETF. With the stock market and traditional brokerage accounts, an ETF is considered one of the best and easiest methods to bring Bitcoin access to the masses. At the time, there was no recognized Bitcoin-related ETF on the market, so retail investors had to make use of Bitcoin vehicles like Grayscale’s GBTC.
However, an ETF provides direct access to BTC with no need to pay security fees or engage in third-party organizations. NYDIG wanted to list the ETF on the NYSE. The company’s Bitcoin assets would be held by the NYDIG Financial Institution, and its debut approved participant would’ve been financial behemoth, Morgan Stanley. The NYDIG Bitcoin Trust would have also paid a 0.5 percent annual fee to NYDIG Wealth Management. According to the filing, the Bitcoin on-chain is exchangeable, and the Bitcoin system and infrastructure function at a high level.
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