Constant Proportion Portfolio Insurance (CPPI), along with other Canadian pension funds, has decided to abandon all cryptocurrency investment efforts. These pension funds include the Ontario Teachers Pension Fund (OTTP), the second-largest Canadian pension fund, which is the Caisse de dépôt et Placement du Québec, the Ontario Municipal Employee Retirement System (OMERS), and OPTrust (OPSEU Pension Trust).
CPP Investment, the nation’s largest, has decided not to conduct any further research on cryptocurrency investments with its three-person team. This activity may have been influenced by the failure of FTX and Celsius (a crypto lending platform). Two of the biggest pension funds in the nation were impacted by this catastrophe to the point where they had to write off their investment in FTX.
In one of his June presentations, John Graham, the CEO of CPPI, stated that, while they have not invested in cryptocurrency, they are still researching and attempting to comprehend it. They claimed that they had not made direct investments in cryptocurrency because they were being cautious because their pension plan controls C$529 billion, or 388 billion US dollars, on behalf of more than 20 million Canadian residents. However, they have currently given up on the hunt and even reassigned their three-person squad to other duties.
These teams were reportedly still evaluating investment opportunities as of late July of this year, while others claim they gave up the search earlier. Even though they stopped researching cryptocurrency investments, Canadian pension funds are still allowed to purchase cryptocurrencies. Alternatively, they used a variety of risk-management strategies to mitigate potential risks while ensuring a steady income stream for retirees.
The Ontario Teachers’ Pension Fund (OTTP), which manages assets worth approximately C$242 billion, invested C$95 million in Future Exchange Token but was let down by the market collapse. Caisse de dépôt et placement du Québec, the country’s second-largest pension fund, was also impacted and was forced to write off C$150 million in Celsius investments. They even filed a lawsuit against Celsius Digital Lending in bankruptcy court. The OPTrust (OPSEU Pension Trust) also informed Thomson Reuters Corporation that it continues to have interests in the crypto assets fund market, which is in the underlying crypto technology, while the Ontario Municipal Employee Retirement System (OMERS) abandoned its investments in 2020.