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A pension fund for firefighters in Houston has made a purchase in bitcoin and ether facilitated by bitcoin investment firm NYDIG.
The Houston Firefighters’ Relief and Retirement Fund’s (HFRRF) purchase marks the first time a public pension plan in the U.S. has announced an investment in digital assets, according to an announcement Thursday.
The fund has invested $25 million in bitcoin and ether, though it has not disclosed how this is split between the two. The fund holds over $4 billion in total assets, according to Bloomberg.
“I see this as another tool to manage my risk,” Bloomberg quoted Ajit Singh, the chief investment officer for fund, as saying. “It has a positive expected return, and it manages my risk. It has a low correlation to every other asset class.”
The investment was made via bitcoin investment firm NYDIG, which is providing the custody for the crypto purchased.
The HFRRF membership is composed of 6,600 active and retired firefighters and their families. Since 2004, active firefighters have contributed 9% of their salary to the fund, with the City of Houston required to contribute at least double that amount by state statue.
UPDATE (Oct. 21, 14:45 UTC): Updated with information and quotes in the second and third bullet points.