TORONTO, Nov. 10 (Reuters) – The Ontario Academics Pension Plan (OTPP) mentioned on Thursday it had invested a complete of $95 million within the troubled cryptocurrency trade FTX and any monetary losses from the publicity can have restricted impression on the pension plan. .
OTPP, Canada’s No. 3 pension fund, mentioned it made investments in FTX Worldwide and FTX US via its Academics’ Enterprise Development fund, which represents lower than 0.05% of the pension fund’s complete internet property.
FTX struggles to lift funds from buyers and rivals as Chief Govt Sam Bankman-Fried makes an pressing try and rescue the cryptocurrency trade that has been ravaged by a torrent of buyer withdrawals. learn extra
OTPP is the second Canadian pension fund to be caught up within the crypto turmoil.
In August, Canada’s No. 2 pension fund Caisse de dépôt et placement du Québec wrote off about $150 million of its investments in crypto lending firm Celsius after submitting for chapter safety earlier this yr.
In a September interview with Reuters, OTPP had described its funding in FTX because the funding with the “lowest” threat profile in its space.
Trainer’s Enterprise Development invests in start-ups.
“After all, not all investments on this early stage asset class carry out as anticipated,” the fund mentioned.
The Ontario authorities, which is a joint sponsor of the pension fund, mentioned the Monetary Companies Regulatory Authority of Ontario, because the regulator of OTPP, has plans to make sure applicable threat administration processes. FSRAO didn’t instantly remark.
Most different Canadian pension funds, that are prolific world buyers, have stayed away from crypto investments. Canada’s fifth largest fund PSP mentioned it wished to be cautious regardless of curiosity within the crypto area,
“It’s important to watch out as a pension fund and as a long-term investor if you enter innovation and a brand new expertise,” mentioned Herman Bril, head of accountable funding on the Public Sector Pension Funding Board in Montreal.
Reporting by Divya Rajagopal and Maiya Keidan in Toronto, Modifying by Deepa Babington
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