Virginia’s Fairfax County remains a leading public institutional investor within the cryptocurrency space and it is set to diversify its portfolio having a transfer to yield farming.
As formerly reported, global asset managers VanEck announced the Fairfax employees’ and police retirement systems invested $35 million in to the firm’s crypto lending fund. It’s the most recent investment move through the two county-run funds within the cryptocurrency space since their original foray started in 2018.
Cointelegraph arrived at to Andy Spellar, the main investment officer of Fairfax’s employees’ retirement system, to unpack their purchase of VanEck’s crypto lending fund and also the reasoning behind it.
Spellar confirmed the employees’ retirement system (ERS) had committed $25 million towards the fund as the police officers’ retirement system (PORS) had promised $ten million. An investment will occur between This summer and September this season, based on market conditions.
A preliminary tranche was already received by VanEck, with Spellar revealing the ERS and PORS have invested $ten million and $5 million, correspondingly for that month of This summer.
The move is unquestionably great news for that cryptocurrency space, that is presently long lasting a serious downturn alongside conventional stock markets worldwide. The Decentralized Finance (DeFi) sector has perhaps endured probably the most, using the collapse of algorithmic stablecoin Terra creating a cascading effect through the space.
Because the wider cryptocurrency ecosystem weathers the storm, investment schemes and money like Fairfax County’s ERS and PORS still begin to see the value provided by the sphere, as Spellar told Cointelegraph:
“We have checked out the area like a diversifier with this credit/high yield portfolios especially performance periods such as the very short-term nature (1-3 several weeks) from the positions.”
Spellar offered something to think about around the market conditions, noting that the risk-adjusted basis outlook shows that cryptocurrency markets haven’t offered off anymore than high growth sectors like tech, existence sciences or government bonds:
“We haven’t seen almost anything to counter the lengthy-term thesis more things than less is going to be digitized later on, including traditional assets themselves. These kinds of markets shake out weak players and technologies and therefore are overall healthy for markets and industries.”
The ERS and PORS funds have were able to fare well among broad market sell-offs because of their broadly diversified portfolios. Spellar noted that both of them are top-performing public funds across short and lengthy-term time domains and expects the most recent quarter of the season to become exactly the same when it comes to performance.
Regardless of the first six several weeks of 2022 being among the worst performance periods on record, Fairfax expects both systems to become top decile performers within the period. Spellar stated digital asset segment of the portfolio was really small, with the great majority comprised of traditional investment capital equity investments.
