Following news of the FTX scandal, the Ontario Teachers’ Pension Plan (OTPP), the third-largest organization of its kind in the North American country, was one of the first to act to reveal that it is investing in the crypto- exchange had invested. After FTX has filed for bankruptcy, the fund clearly wants to move on. At the same time, his investment represents only 0.05% of his assets under management. decryption.
The impact of this investment in FTX is marginal
On Friday, the Ontario Teachers’ Pension Plan made an announcement about its investment in the FTX crypto exchange. The pension giant has decided to do just that write off its $95 million investment in the platform. This represented 0.05% of the fund’s total net assets, the third largest in Canada. Indeed, it manages nearly $250 billion in assets, for more than 330,000 teachers.
As a reminder, the fund initially invested $75 million in FTX International and FTX.US in October 2021. It then injected another $20 million into FTX.US last January. These investments were made through its subsidiary Teachers’ Venture Growth (TVG).
“The financial loss associated with this investment will have a limited impact on the Scheme. This in view of the size in relation to our total assets and our solid financial position. However, we are disappointed with the result of this investment. We take all losses seriously and will use this experience to further strengthen our approach. »
This isn’t the first time a major Canadian pension fund has lost money in cryptos. Last August, Caisse de Dépôt et Placement du Québec (with more than $300 billion in assets under management) announced a $150 million loss in crypto lender Celsius Network. After this disappointing investment, the fund announced that it would no longer be exposed to cryptos.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only added to my enthusiasm. I therefore decided to study and understand the blockchain and its many applications and to pass on information about this ecosystem with my pen.