• Virginia Retirement Systems has made an investment in VanEck’s Crypto Lending Fund

  • Fairfax County Employees’ Retirement System and Fairfax County Police Officers’ Retirement System each put $35 million into VanEck’s New Finance Income Fund.

    Two Virginia retirement systems contributed $35 million to VanEck’s cryptocurrency lending fund. Since years ago, the Police Department pension fund invested in blockchain technology and later expressed aspirations to add crypto investment managers, the administrative region has had experience in the digital asset business.

    New Investors attracted to VanEck’s Lending Fund

    According to its website, VanEck’s New Finance Income Fund seeks to provide “attractive income to investors through short-term lending arrangements with digital asset businesses.” The company says that its feature provides high-yield income exposure to cryptocurrencies as well as a simplified approach to the asset class.

    According to a recent news release, the Fairfax County Employees’ Retirement System and the Fairfax County Police Officers Retirement System are the latest investors in the program. They transferred a total of $35 million.

    It’s worth noting that the Virginia Police Department invested a portion of its pension fund in bitcoin and blockchain technology in general three years ago. Despite the sector’s volatility, Director Jeff Weiler believes that all investments involve some risk, and that dealing with cryptocurrency might result in considerable earnings:

    “However, as they would do with any investment, Fairfax’s investment team determined that the expected returns from this investment were in line with the level of risk incurred. This also played a big part in how much was invested.”

    The Fairfax County Police Department’s pension fund increased its efforts earlier this year by hiring bitcoin investment managers.

    VanEck’s Bitcoin ETF Aspirations

    When it comes to VanEck, it is worth noting that its major goal is to create a spot Bitcoin exchange-traded fund (ETF) in the United States.

    Over the years, the global investment management has sought SEC permission several times. However, each time, the agency rejected the files, claiming investor protection or other issues.

    Nonetheless, VanEck filed a new application with the government at the beginning of this month, stating:

    “The only consistent outcome would be approving spot Bitcoin ETPs on the basis that the Bitcoin futures market is also a regulated market of significant size as it relates to the Bitcoin spot market.”

    The Securities and Exchange Commission (SEC), which recently denied Grayscale’s proposal to launch a Bitcoin ETF in the United States, has until March 2023 to decide if VanEck’s product may function on American territory.

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