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Police and other employees in Fairfax County, Virginia, are hoping to retire with potential dividends from an unusual source: bitcoin.

Two separate pension funds, which collectively manage $ 1.2 billion in assets for state police and other employees, are funding a $ 40 million investment in the Morgan Creek Blockchain Opportunities Fund, which, in addition to supporting some of the best known startups in the industry, plans to invest in cryptocurrency.

Some of the $ 40 million has already been invested in startups, including Bakkt, the cryptocurrency exchange owned by Starbucks and the Intercontinental Exchange, which manages the New York Stock Exchange.

While the collapse of the bitcoin price in 2018, the first application of blockchain technology, has scared many potential investors, the decision of two pension funds to support a series of cryptocurrency and blockchain startups shows that D & B Others seek to capitalize on the bear market.

"Blockchain technology is uniquely and convincingly applied in many industries," said Katherine Molnar, director of investments for the Fairfax County Police Officer Pension System, in a statement. "We think it's important to be opportunistic and are excited to participate in this emerging opportunity."

In addition to Bakkt, the fund, created by Morgan Creek Digital in New York, invests in the recently-valued $ 8 billion Coinbase cryptocurrency giant, as well as several lesser-known startups, including Blockfi, RealBlocks, TrustToken, Harbor , Open Finance Network and CityBlock. Capital data, name database, good money and digital assets. Up to 4 million dollars in investment could eventually be used to buy cryptocurrency directly, although this has not happened yet.

The terms of the investment are not disclosed, ie it is a special purpose instrument, which means that the investment will not be included in the start-up capitalization tables, said Morgan Creek Digital co-founder Anthony Pompliano. already invested. Originally, Pompliano said his company wanted to raise $ 25 million but increased the number because of its popularity.

According to Molnar, the investment opportunity has first drawn her to what she calls the "asymmetrical yield profile that she represents". In other words, bitcoins and other cryptocurrencies have proved largely disconnected from global events, making them possible hedges for other assets more correlated, according to Pompliano.

"These are incredibly smart, long-term resources with a permanent capital allocation capability," says Pompliano, co-founder of the fund with renowned hedge fund investor Mark Yusko. "And so, they have a state of mind very different from that of private investors or certain other donors."

The most recent Fairfax County Annual Report report shows that out of the $ 1.5 billion invested in trust pension funds, $ 1.2 billion was spent on police and employee funds, the rest on a more general uniform pension fund. While the price of bitcoin has fallen 83% in 2018 and is currently around $ 3,595, it is down $ 19,000, while supporters point to the $ 5.6 billion already invested in the # 39, space, according to CoinDesk data, to build long-term. solutions to generate value with less trust in banks.

The Morgan Creek Blockchain Opportunity Fund marks an unusual merger between traditional venture capital transferred into crypto and a new generation of companies aiming to use cryptocurrency to prepare for retirement. Despite a Warning According to the Securities and Exchange Commission, some types of cryptocurrency IRAs are particularly prone to fraud, a start-up, Bitcoin IRA, says it has already made a $ 300 million investment.

To fight potential fraud problems, Pompliano worked with pensions to answer their questions about potential risks and the difference between cryptographic investments and traditional assets. He added that the blockchain fund would continue to invest in crypto-currencies and infrastructure construction companies for a wide range of blockchain products, he said, while advancing the next step of his project. Since March 2018, it is breeding a separate fund of $ 500 million to invest in future chips which he said should be created using the blockchain to represent shares in all kinds of activities, from works of art to real estate.

"Our venture capital fund can invest in chip companies," says Pompliano. "We can invest in stock market stocks where these chips are traded. But the big fund will buy the chips themselves. "

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p class=”speakable-paragraph”>Police and other employees in Fairfax County, Virginia, are hoping to retire with potential dividends from an unusual source: bitcoin.

Two separate pension funds, which collectively manage $ 1.2 billion in assets for state police and other employees, are funding a $ 40 million investment in the Morgan Creek Blockchain Opportunities Fund, which, in addition to supporting some of the best known startups in the industry, plans to invest in cryptocurrency.

Some of the $ 40 million has already been invested in startups, including Bakkt, the cryptocurrency exchange owned by Starbucks and the Intercontinental Exchange, which manages the New York Stock Exchange.

While the collapse of the bitcoin price in 2018, the first application of blockchain technology, has scared many potential investors, the decision of two pension funds to support a series of cryptocurrency and blockchain startups shows that D & B Others seek to capitalize on the bear market.

"Blockchain technology is uniquely and convincingly applied in many industries," said Katherine Molnar, director of investments for the Fairfax County Police Officer Pension System, in a statement. "We think it's important to be opportunistic and are excited to participate in this emerging opportunity."

In addition to Bakkt, the fund, created by Morgan Creek Digital in New York, invests in the recently-valued $ 8 billion Coinbase cryptocurrency giant, as well as several lesser-known startups, including Blockfi, RealBlocks, TrustToken, Harbor , Open Finance Network and CityBlock. Capital data, name database, good money and digital assets. Up to 4 million dollars in investment could eventually be used to buy cryptocurrency directly, although this has not happened yet.

The terms of the investment are not disclosed, ie it is a special purpose instrument, which means that the investment will not be included in the start-up capitalization tables, said Morgan Creek Digital co-founder Anthony Pompliano. already invested. Originally, Pompliano said his company wanted to raise $ 25 million but increased the number because of its popularity.

According to Molnar, the investment opportunity has first drawn her to what she calls the "asymmetrical yield profile that she represents". In other words, bitcoins and other cryptocurrencies have turned out to be largely disconnected from global events, making them possible hedges for other assets more correlated, according to Pompliano.

"These are incredibly smart, long-term resources with a permanent capital allocation capability," says Pompliano, co-founder of the fund with renowned hedge fund investor Mark Yusko. "And so, they have a state of mind very different from that of private investors or certain other donors."

The most recent Fairfax County Annual Report report shows that out of the $ 1.5 billion invested in trust pension funds, $ 1.2 billion was spent on police and employee funds, the rest on a more general uniform pension fund. While the price of bitcoin has fallen 83% in 2018 and is currently around $ 3,595, it is down $ 19,000, while supporters point to the $ 5.6 billion already invested in the # 39, space, according to CoinDesk data, to build long-term. solutions to generate value with less trust in banks.

The Morgan Creek Blockchain Opportunity Fund marks an unusual merger between traditional venture capital transferred into crypto and a new generation of companies aiming to use cryptocurrency to prepare for retirement. Despite a Warning According to the Securities and Exchange Commission, some types of cryptocurrency IRAs are particularly prone to fraud, a start-up, Bitcoin IRA, says it has already made a $ 300 million investment.

To fight potential fraud problems, Pompliano worked with pensions to answer their questions about potential risks and the difference between cryptographic investments and traditional assets. He added that the blockchain fund would continue to invest in crypto-currencies and infrastructure construction companies for a wide range of blockchain products, he said, while advancing the next step of his project. Since March 2018, it is breeding a separate fund of $ 500 million to invest in future chips which he said should be created using the blockchain to represent shares in all kinds of activities, from works of art to real estate.

"Our venture capital fund can invest in chip companies," says Pompliano. "We can invest in stock market stocks where these chips are traded. But the big fund will buy the chips themselves. "