- The Ontario Lecturers’ Pension Plan determined to avoid crypto investments after shedding $95 million in FTX.
- The misplaced funds characterize simply 0.05% of the fund’s portfolio, however was nonetheless sufficient to make the pension fund exit the crypto sector.
The Ontario Lecturers’ Pension Plan is now not eager on crypto investments after shedding $95 million in FTX, the Bahamas primarily based bankrupt crypto trade. The Canadian pension fund was one in every of a number of high-profile funds to put money into FTX between 2021 and 2022, earlier than the trade collapsed.
One other Crypto Funding not within the playing cards
In accordance with a report by the Financial Times, the Ontario Lecturers’ Pension Plan wrote off its complete stake in Sam Bankman-Fried’s crypto trade after its downfall.
Whereas the stake solely represented 0.05% of the Canadian pension fund’s $190 billion portfolio, it was sufficient to discourage the fund from pursuing crypto investments in the intervening time.
Except for the financial loss, the fund has additionally come beneath scrutiny for backing a agency whose founder is now being investigated for perpetrating a fraud amounting to billions.
Talking on the quantities misplaced at FTX, the fund’s CEO Jo Taylor said,
“We’re nonetheless working via what precisely occurred there and also you’re going to watch out. We took our time and did loads of due diligence on the enterprise. It didn’t prove the way in which we thought. We weren’t essentially proven all the knowledge we would have liked to know to make a balanced resolution.”
The pension fund learnt the dangers related to crypto investments the arduous method. The loss confronted by the Ontario fund with FTX was topped by Canada’s second largest pension fund supervisor Caisse de dépôt et placement du Québec.
They wrote off a whopping $150 million that it had invested in bankrupt crypto lender Celsius Community. The Quebec primarily based fund has additionally determined to avoid crypto investments.
The Ontario fund is now eyeing recent alternatives in actual property after its misfortune with the crypto house.
