March 2, 2024

  • Fairfax County Retirement Systems will invest in performance cultivation programs.
  • Chief Investment Officer Katherine Molnar talked about the strategy in an interview.
  • The regulatory landscape in the US is changing, and with it, more established institutions may be warming up to crypto.

Fairfax County Retirement Systems, a pension fund in the state of Virginia, will invest in yield cultivation programs in an effort to boost its fund’s returns. Fairfax County Police Officers Retirement System Chief Investment Officer Katherine Molnar said some of the returns are really attractive, among others.

Fairfax County Retirement Systems determined to add crypto as part of its portfolio in May 2022. It has also invested in blockchain in the past, through the Morgan Creek Blockchain Opportunities Fund; Fairfax’s crypto holdings amount to more than 8% of its portfolio.

Regarding the technology and its potential, Molnar seemed willing, saying,

“For those who are still willing to provide liquidity, those who are looking for a decent profit, they are actually able to earn more attractive returns at the moment… we were at a conference and heard an academic who was teaching a course on the subject. We were really intrigued by the promise of its technology and products.”

The overall impression given by Molnar and others was one of hope. Molnar believes that “things will recover and the strongest technologies will probably survive.”

This is yet another milestone for the crypto market, which has seen many ups and downs in recent months. The fact that a pension fund is investing in the cryptocurrency lending space after the recent debacle of major players is a strong sign of belief in the market.

Crypto moves ahead despite hiccups

The cryptocurrency market has endured a lot in recent months, but that hasn’t stopped it from advancing on its path to global adoption. The DeFi market continues to grow and more countries are beginning to recognize the asset class as legitimate.

With this comes certain changes, such as regulation, which in the short term can cause some pain. With the fall of the UST, stablecoins, in particular, have entered the authorities’ radar.

The United States is set to regulate the crypto market by 2023 at the latest, while others such as Brazil are already well on their way. Regulation is not inevitable, but the sentiment today seems to be one of acceptance, as opposed to draconian crackdowns.

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