US pension fund invests in crypto yield farming

Financial TimesNovember 08, 2022

Fairfax County Retirement Systems, a $6.8bn Virginia pension fund has gained approval from its board of trustees to invest $70mn in two crypto yield farming funds. This is the latest in a series of crypto investments made by the state pension fund.
Jeff Weiler, the director of the fund has said of their previous investments that even though, like with any investment there is a risk, he sees that the expected returns are in line.
Now Katherine Molnar the chief investment officer of Fairfax County Police Officers Retirement System is citing market conditions as another reason to increase their exposure.
“Some of the yields that you’re able to achieve in a yield farming strategy are really attractive because some of the people have stepped back from that space”
Even through the recent downturn in the digital asset market, Molnar is saying that their investments are still up 350%, and that they are confident about their investment thesis, expecting that the strong technologies will survive.
The news is highlighting the increasing adoption of digital assets such that even the more conservative type of investors are now allocating portions of their portfolio to crypto asset classes. Considering the integration of blockchain technologies in major traditional exchanges , and that at the start of this year their market cap was,%2450tn%2C%20or%20the%20E.U.50x smaller than the equity market, there is plenty of room for this trend to continue.