Two retirement systems in Fairfax County, Virginia distributed $35 million to VanEck’s crypto lending fund. The administrative sector has experience in the digital asset industry from years ago, with its Police Department pension fund investing in blockchain technology and subsequently showing intentions to add crypto investment managers.
VanEck’s Lending Fund Attracts New Investors
As presented on its website, VanEck’s New Finance Income Fund aims to provide “attractive income to investors through short-term debt arrangements with digital asset entities”. The company claims that its feature provides high-yield income for cryptocurrencies and a simple approach to the asset class.
According to a recent press release, two retirement systems in Virginia — the Fairfax County Employee Retirement System and the Fairfax County Police Officer Retirement System — are the latest investors in the product. Collectively, they transferred an initial tranche of $35 million.
Significantly, three years ago, the Virginia Police Department invested a portion of its pension funds in bitcoin and blockchain technology in general. Despite the volatility in the sector, director Jeff Weiler said that all investments hide some risk, adding that dealing with crypto can generate significant earnings:
“However, as they would with any investment, Fairfax’s investment team determined that the expected return from this investment was commensurate with the level of risk. It also plays a large role in how much was invested.”
Earlier this year, the Fairfax County Police Department’s Pension Fund doubled down on its efforts by adding cryptocurrency investment managers.
VanEck and Its Bitcoin ETF Ambitions
Speaking of VanEck, it’s worth looking at its primary goal of launching a spot bitcoin exchange-traded fund (ETF) in the United States.
The global investment manager has sought SEC approval several times over the years. Each time, however, the regulator rejected the filing, citing investor protection or other constraints.
Nevertheless, earlier this month, VanEck filed another application with the agency, stating:
“The only consistent outcome would be to approve the spot bitcoin ETP on the grounds that the bitcoin futures market is also a regulated market of significant size as it relates to the bitcoin spot market.”
The SEC, which recently rejected Grayscale’s application to launch a bitcoin ETF in the states, has until March 2023 to decide whether VanEck’s product can work on US soil.
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