Canadian Pension Fund CPP Investments manages $388 billion for nearly 20 million Canadians, After researching cryptocurrency investment opportunities for a year, he abandoned his plans to invest in cryptocurrencies. Reuters sources.
In early 2021, CPPI’s Alpha Generation Lab, which studies emerging investment trends, formed a team of three members to study cryptocurrency and blockchain business.
However, one of the sources said CPPI finished evaluating investment opportunities before July, though it is unclear exactly when. Sources say CPPI has relocated its research team to other areas after abandoning its efforts.
The exact reason behind the abandonment is unknown, but CPPI CEO John Graham said he didn’t want to invest in crypto for fear of missing out.
Commenting on the development, Coin Bureau, a popular cryptocurrency influencer, said the news was “less shocking.”
Considering that Canadian pension funds have entered the cryptocurrency space, this is not too shocking.
— Coin Bureau (@coinbureau) December 7, 2022
Tough Times For Canadian Pension Funds With Crypto Investing
It was was suggested Pension funds embrace Bitcoin because the asset has no liquidation risk, does not require leverage, and is an excellent alternative to risky betting. However, there is no good news for Canadian pension funds at this time.
CPPI’s recent move follows the write-off of investments by Canada’s two largest pension funds after the collapse of FTX and Celsius.
Earlier this year, the Caisse de Depot et Placement du Québec pension fund write off A $150 million stake in bankrupt crypto lender Celsius Network.
Additionally, the Ontario Teachers’ Pension Plan could lose up to $95 million from its investment in FTX, the now-bankrupt cryptocurrency exchange. The $182.9 billion pension fund joined 68 other investors in a $420 million funding round last October for FTX Trading Ltd., which operates FTX.COM.