Celsius

The Ontario Teachers&#8217; Pension Plan (OTPP) has <a href="https://www.ft.com/content/29c67711-377c-4435-9c90-280852374e93" rel="nofollow noopener" target="_blank">declared</a> its decision to steer clear of the cryptocurrency industry following the unfortunate loss of $95 million due to the <a href="https://www.cryptopolitan.com/sam-bankman-fried-how-ftx-collapsed-current-crypto-regulations/?swcfpc=1">collapse of FTX</a>.&nbsp;



The collapse ensued after the CEO, Sam Bankman-Fried (SBF), misappropriated customer funds. The OTPP, which suffered significant financial repercussions, has taken a stance to avoid any similar risks in the future by refraining from involvement with the cryptocurrency industry.



The now-bankrupt cryptocurrency exchange, once the third-largest digital business globally, had several investors and backers, including the Ontario Teachers&#8217; Pension Plan (OTPP). The OTPP managed assets worth over $190 billion and was among the many investors associated with the exchange.&nbsp;



The collapse of FTX had a ripple effect on the entire cryptocurrency market. The market experienced a bearish sentiment in the last few months of last year, causing digital currencies like <a href="https://www.cryptopolitan.com/what-is-bitcoin-mining-and-how-does-it-work/">Bitcoin</a> to plummet to a low of up to $15K.



The impact of the collapse was felt across the industry, leading to a general sense of uncertainty and caution among investors.



In an interview with the Financial Times, Jo Taylor, the Chief Executive of the OTPP association, stated that rushing into another crypto investment would be unwise for the pension fund. Taylor explained that they are currently processing what happened with the exchange and would exercise much more caution before investing in emerging assets such as digital currencies.



It&#8217;s worth noting that the pension fund is responsible for providing pensions to over 330,000 teachers and school workers.



The report indicates that the OTPP&#8217;s pension asset is actively seeking new investment opportunities in various sectors, including real estate, and plans to gain exposure to the private credit sector.



Over the next three years, the investment plan provider aims to invest around 10 billion Canadian dollars, equivalent to $7.4 billion, to enhance and diversify its portfolio in the abovementioned sectors.



The collapse of the crypto exchanges in Canada impacted OTPP and other organizations such as Caisse de dépôt et placement du Québec (CDPQ), another prominent pension fund. <a href="https://www.cryptopolitan.com/pension-fund-manager-to-invest-in-crypto/?swcfpc=1">CDPQ </a>lost its investment of over $154.7 million to Celsius Network, a cryptocurrency lender that was among many crypto lenders to go under during the crypto contagion in the second quarter of 2022.

Ontario Teachers’ Pension Plan steps away from crypto industry after FTX loss

Cryptopolitan_News

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