Ontario Teachers Pension Floats with FTX Trading amid Crypto Volatility

Ontario Teachers Pension Plan, Canada’s biggest professional pension fund company, has announced that its bet FTX trading carries the least risk of all crypto asset classes. Reuters reported Tuesday.

According to the pension fund company, its investment in FTX crypto trading platform has grown in uncertain times.

Ontario Teachers Pension Plan comments were made following the announcement by “Caisse et Placement Quebec”, another Canadian pension fund company, that it was writing off its $150 million investment in Celsius Network’s crypto lending platform Celsius Network. The lender filed for bankruptcy in this year.

Canada’s third largest pension fund, Ontario Teachers Pension Plan, manages $227.7 million in net assets. The pension fund invested in crypto trading platform FTX Trading Ltd’s $420m funding round last October.

Jo Taylor, CEO of Ontario Teachers Pension Plan, stated previously to Reuters: “In terms risk profile, it’s probably the lowest you can have in the fact that everybody else is trading your platform.

He also stated that the business is performing well. However, he declined comment to discuss the investment by OTPP or the equity stake.

Taylor explained that FTX Trading was an investment to gain knowledge about the crypto industry and determine if it is a good business model.

Despite Market Downturn, Crypto Investing

The price of Bitcoin crashed by more than 50% this year, which has dragged down other digital assets.

Some large institutional investors continue to place bets on this asset class despite the economic downturn. Even though trading volumes and prices have dropped for Bitcoin and other cryptos, well-known Capital managers continue to find new ways of monetising investor interest.

Early last month, a $6.8 billion Virginia pension fund company, the Fairfax County Retirement Systems, announced plans to boost its returns by investing in crypto lending markets despite a crisis in the crypto industry.

Abrdn plc (a UK-based global investor company) entered crypto investments last month by purchasing a stake on Archax, a UK-regulated digital asset exchange.

Archax allows institutional investors to trade cryptos and tokenised securities like fractions of shares in companies. Abrdn expects to make “huge revenues” over time by allowing clients to access its funds in tokenized form and assets that are more difficult to trade, such as private debt and private equity, as well as assets that can be traded on its platform.

Abrdn made the investment as BlackRock launched last month a spot Bitcoin trust to institutional investors via a partnership with Coinbase.

Charles Schwab, an American broker and investments company, launched last month an exchange-traded mutual fund (EFT), to provide investors with exposure to crypto without buying the currencies.

The Schwab ETF invests only in companies that are listed and have the potential to make a profit by offering services to crypto investors, or by using the underlying blockchain technology.

Image source: Shutterstock

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