Investing pension plans in the crypto market can be a controversial topic due to the volatility and uncertainty associated with cryptocurrencies. However, some argue that allocating a portion of pension funds to cryptocurrencies can provide diversification and potentially higher returns.
According to a recent report from Fidelity Digital Assets, Fidelity's pension plan fund is preparing to explore investment opportunities in cryptocurrencies.
During an event in London, Manuel Nordest, vice president of digital assets at Fidelity, noted that other plans and pension funds are now discussing the potential of crypto assets with their investment committees.
Nordeast drew attention to the fact that family offices and high-net-worth individuals have shown increasing interest in cryptocurrencies.
Fidelity Digital Assets was founded in 2018 and the division has attracted interest from these groups, as well as specialist asset managers and large hedge funds.
Nordest said:
Now, we have begun to reach out to larger institutional investors, and we are already attracting some of those clients.
A market survey from Fidelity Digital Assets showed that 80% of high-leverage individuals have a positive view of cryptocurrencies, compared to 23% of pension plans.
Among these groups, 48% of individuals have invested in digital assets versus only 7% in retirement plans.