Canada’s Pension Fund Abandons Crypto After Losing $95 Million In FTX

Key Points:

• After suffering a loss of $95 million in FTX, the Ontario Teachers’ Pension Fund has decided that it will no longer participate in the cryptocurrency market.
• Since the crypto space proved to be unsuccessful, the Ontario Foundation is now focusing its attention on the real estate sector in search of new opportunities.

Following significant harm from the collapse of FTX, Canada’s pension fund has formally said no to digital asset investments.

The Ontario Teachers’ Pension Fund has evaluated its risk appetite after losing $95 million due to the collapse of FTX and has decided not to rush into investing in cryptocurrencies in the future. After losing $95 million in FTX, the Ontario Teachers’ Pension Fund is no longer interested in crypto investments.

The Ontario Canada Teachers’ Pension Fund was one of numerous well-known funds that invested in FTX between 2021 and 2022, just before the exchange went bankrupt. The Ontario Teachers’ Pension Fund has lost its entire stake in Sam Bankman-Fried’s bitcoin exchange, according to a Financial Times investigation.

While it only accounts for 0.05% of the Ontario Canada Teachers Retirement Fund’s $190 billion portfolio, it is enough to discourage the fund from pursuing crypto investments for the time being.

“We are still figuring out exactly what happened,” Fund CEO Jo Taylor said of the money lost at FTX. We took our time and performed extensive research on the company. It didn’t come out the way we expected.”

The risks associated with investing in cryptocurrencies have been brought to the attention of pension funds through the painful experience of having to learn them the hard way. In the same vein, the fund located in Quebec has decided to steer clear of bitcoin investments. After the crypto space proved to be unsuccessful, the Ontario Foundation is now focusing its attention on the real estate sector in search of new opportunities.

According to a previous article by Coincu, Canada has mandated a registration limit of thirty days for cryptocurrency companies. This is the bare minimum period of time that cryptocurrency companies that do business in this country have to register and bring themselves into compliance with the law.

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