SWIB Director Ellen Smith explained that, despite the initial interest in bitcoin as a means of diversification of the investment portfolio, the current volatility of the cryptocurrency and the growing political tension forced the advice to revise their strategy. SWIB decided to get out of Bitcoin’s sp – minimize potential risk for the state pension system, which directly depends on the stable profitability of investment.
SWIB leaders admitted that this step can be perceived as a deviation from financial innovation, which may scare some investors interested in cryptocurrencies. However, in the long run, the rejection of investments in high -voltage digital assets should reduce the dependence of the Visconsin pension funds on the turbulence of the cryptocurrency market. This, in turn, will positively affect the stability of payments and ensure great financial security for pensions, representatives of the Council explained.
Earlier, the Fidelity Investments management company introduced to customers an individual pension plan (IRA) with the opportunity to invest in bitcoin, ether and Litecoin.
Source: Bits
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