• A pension fund in the United States has decided to allocate $25 million to cryptocurrencies.
  • The Houston-based pension fund invested in Bitcoin and Ether through a partnership with NYDIG.
  • The chief investment officer of the HFRRF believes that this allocation is a method of managing the fund’s risks. 

Institutional interest in cryptocurrencies continues to rise as a pension fund in the United States has made a substantial purchase in Bitcoin and Ether as the leading cryptocurrencies recently reached new all-time highs. 

Crypto became an asset class the fund ‘could not ignore’ 

The Houston Firefighters Relief & Retirement Fund (HFRRF), which has over $4 billion in assets, recently invested $25 million in Bitcoin and Ether through the New York Digital Investment Group (NYDIG), a subsidiary of asset management firm Stone Ridge.

The chief investment officer of HFRRF, Ajit Singh, stated that the recent investment in the top two cryptocurrencies by market capitalization was a tool to manage risks and that it has a positive expected return with little correlation to every other asset class.

Singh added that he preferred direct tokens rather than investing in futures-related products. He expects that with more institutional adoption in the crypto market, there would be an increase in dynamics that develop for supply and demand. He further stated that holding the physical assets would give the fund the possibility of income generation potential.

The firm has been studying the new asset class before adding Bitcoin and Ether to its investment portfolio. Singh concluded that cryptocurrencies became an asset class that the fund “could not ignore anymore.”

JPMorgan Chase & Co. strategists believe that inflation concerns acted as the main fuel behind the crypto rally, driving Bitcoin and Ether to all-time highs rather than the hype generated by the first BTC exchange-traded fund (ETF) launch in the United States.

The strategists added that the perception of Bitcoin as a better inflation hedge than gold is the main reason for the recent cryptocurrency surge, as investors have shifted away from gold ETFs into BTC funds since Q3.

Ethereum price retraces following all-time high

Ethereum price is searching for a foothold following its new all-time high that was reached on October 21. The prevailing inverse head-and-shoulders pattern projects a 25% rise from the chart pattern's neckline, with a bullish target at $4,639.

The first line of defense for Ethereum price is at the support trend line at $3,974. Further support will emerge at the 78.6% Fibonacci retracement level at $3,793. Slicing below this level may see ETH tag the neckline of the technical pattern at $3,690.

ETHUSDT

ETH/USDT 12-hour chart

However, the bullish outlook would be ruined if Ethereum price falls toward the 50 twelve-hour Simple Moving Average (SMA) and 100 twelve-hour SMA at $3,545 and $3,463, respectively.

Ethereum price must climb above the resistance level at $4,369 to put the optimistic target on the radar. 

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Cardano Price Forecast: ADA set for 20% rally as bullish bets increase

Cardano Price Forecast: ADA set for 20% rally as bullish bets increase

Cardano (ADA) price extends its rally on Monday after gaining more than 13% last week. On-chain metrics suggest a bullish picture as ADA’s long-to-short ratio reached the highest level in over a month.

More Cardano News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH hold steady while XRP gains momentum

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH hold steady while XRP gains momentum

Bitcoin (BTC) has been consolidating between $94,000 and $100,000 for almost two weeks. Ethereum (ETH) price follows in BTC’s footsteps and hovers around $2,680, while Ripple (XRP) shows strength and extends its gains on Monday after rallying 14% last week.

More Cryptocurrencies News
Bitcoin (BTC) vs Gold (XAU): Asset Tokenization expert weighs impact of US Inflation on 2025 price trends

Bitcoin (BTC) vs Gold (XAU): Asset Tokenization expert weighs impact of US Inflation on 2025 price trends

Bitcoin price consolidated at $97,000 on Feb 15, down 6% within the monthly time frame, reeling under bearish headwinds from US tariff wars and rising inflation.

More Bitcoin News
Dogecoin (DOGE) Price mirrors XRP rally as SEC acknowledges Grayscale ETF Filings

Dogecoin (DOGE) Price mirrors XRP rally as SEC acknowledges Grayscale ETF Filings

Dogecoin price surged 3% on Friday, extending its weekly timeframe gains to 17% as ETF speculation gains traction.

More Dogecoin News
Bitcoin: BTC consolidates before a big move

Bitcoin: BTC consolidates before a big move

Bitcoin price has been consolidating between $94,000 and $100,000 for the last ten days. US Bitcoin spot ETF data recorded a total net outflow of $650.80 million until Thursday.

Read full analysis
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

BTC

ETH

XRP