Canadian CPP Stops Crypto Investments
2022.12.07 13:06
Canadian CPP Stops Crypto Investments
Budrigannews.com – According to two people who are familiar with the situation, the largest pension fund in Canada, CPP Investments, has concluded its nearly year-long investigation into investment opportunities in the volatile cryptocurrency market.
CPPI’s decision to stop conducting crypto research was not immediately clear. CPPI stated that it has not made any direct investments in crypto, but declined to comment. It made reference to John Graham, the company’s CEO,’s previous comments on cryptocurrency in which he advised caution.
The people also said that CPPI’s Alpha Generation Lab, which looks at new investment trends, had put together a team of three people at the beginning of 2021 to look into crypto currencies and businesses related to blockchain in the hopes of getting exposure.
However, according to the sources, CPPI abandoned the pursuit this year and redistributed the team to other areas.
In addition, CPPI’s action comes as two of the largest pension funds in Canada have written off their investments following this year’s failures of cryptocurrency lenders Celsius and FTX.
Graham, the CEO of the CPPI, stated earlier this year that the pension plan, which manages C$529 billion ($388 billion) for nearly 20 million Canadians, did not want to invest in cryptocurrency out of fear of missing out.
In a speech in June, Graham advised, “You want to really think about what the underlying intrinsic value is of some of these assets and build your portfolio accordingly.” Therefore, I would say that cryptocurrency is something we continue to investigate and attempt to comprehend, but we have not really invested in it.
When CPPI dropped its plan is unknown. The second source stated that the team completed its work earlier than that, but one of the sources stated that the team was actively evaluating investment opportunities as late as July of this year.
The specifics of CPPI’s attempt to invest in cryptocurrencies and its decision to end it have not been reported previously.
Because the information was not available to the public, the sources refused to provide their names.
Following the FTX disaster, the crypto sector exposure of Canadian pension funds has come under scrutiny. Although Canadian pension funds are permitted to purchase cryptocurrencies, they are well-known for their risk-averse investment strategies that ensure pensioners receive steady returns.
