Bitcoin is emerging as a popular investment option for a lot of venture capitalists; however, it will be perhaps for the first time that a pension fund is mulling a plan to invest. According to the reports the Ontario Municipal Employees Retirement System’s venture arm looking at making investments in Bitcoin and blockchain startups.
The OMERS is a pension fund created by statute in 1962 to handle the retirement benefits of local government employees in the Canadian province of Ontario. However, it has become one of the largest institutional investors in Canada and to keep that tag intact it is trying to enter into Bitcoin and blockchain as it sees huge potential.
The Organization Exploring the Use of Proceeds from recently closed $260m CAD fund
According to the organization, its venture arm, OMERS Ventures, recently disclosed in a recent interview with Canadian business publication TechVibes that it was exploring the use of proceeds from a recently closed $260m CAD fund to make investments in the Bitcoin space. The confidence shown shows digital currency can give attractive returns for investors.
Nonetheless, the fund has also drawn support from the Bank of Montreal and Cisco Investments. Talking about the issue, managing director Jim Orlando said that cybersecurity is another area they have been looking at, specifically in FinTech as Sid mentioned, and in particular what Bitcoin and block chain capability bring in terms of differentiated opportunities.
However, he hopes that to find a couple of investments for Fund II related to Bitcoin and the blockchain, and the security side of that whole paradigm. The changing times prompt the investment companies to change their outlook toward innovative companies and solutions that could help them multiply their investments.
OMERS invested in Equity Market
Nonetheless, OMERS Ventures has also indicated on its website that it would place a heavy emphasis on financial tech companies, particularly, the ones that are operating in Bitcoin industry. The organization also came up with an infographic that showed a number of Bitcoin startups based in Canada.
The OMERS is already invested in equities. Among the private companies its venture OPE owns Marketwire and Oxford Properties. Thus, it is not that it does not have exposure to risky investment options. Bitcoin is definitely a risky investment option given the extremely volatile exchange rate; however, investing in a Bitcoin company can work well in long run.
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