US Fairfax county in Virginia has apportioned part of its pension funds to cryptocurrency, blockchain investments, and yield farming.
The Chief Investment Officer of Fairfax County Police Officers Retirement System, Kathrine Molnar, says that the system plans to fund new crypto-focused hedge fund managers in the next three weeks.
Fairfax has reportedly made seven allocations to crypto in two pension funds, including a venture capital fund. The system has also included a structure that holds illiquid and liquid tokens.
The system has integrated a separate strategy to curb volatility in the allocations, including a hedge fund that features yield farming, basis trading, and cross-exchange arbitrage.
The hedge funds in the new system will reportedly use standalone yield farming strategies. Molnar maintains that yield farming will replace fixed income and is an opportunity for better returns.
Source: Bloomberg Law