Ontario Pension Plan Steers Away from Crypto After Investment Loss

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• Ontario Teachers’ Pension Plan (OTPP) lost their entire investment of $95 million in the now-bankrupt crypto exchange FTX.
• OTPP had invested twice: once during the bull market in 2021 and again in early 2022.
• OTPP will be more cautious before investing in digital currencies and is looking to invest 10 billion Canadian dollars ($7.4 billion) over the next three years towards more traditional markets, such as real estate and private credit sector.

Ontario Teachers’ Pension Plan Facing Loss After Investing In Crypto Exchange

The Ontario Teachers’ Pension Plan (OTPP) had invested twice during the peak of the crypto bull run; once in 2021 and again early 2022, but sadly lost its entire investment of $95 million after the now-bankrupt crypto exchange FTX went bust in November 2022.

OTPP Chief Executive On Investment Decision

OTPP chief executive Jo Taylor said it would be unwise for them to rush into another crypto investment, due to what happened with FTX, and they are still processing what happened. They intend to be much more cautious before making any investments into emerging assets such as digital currency.

Ontario Pension Fund Steering Away From Crypto

The pension fund is now steering away from cryptocurrencies and aiming to gain exposure to more traditional markets such as real estate, private credit sector instead by investing 10 billion Canadian dollars ($7.4 billion) over the next three years.

330,000 Teachers And School Workers Relying On OTPP

The pension fund is responsible for offering pensions to over 330,000 teachers and school workers across Canada which makes it even more important for them to make prudent decisions when it comes to investments .

Conclusion

After a significant loss of $95 million on its crypto investment with FTX going bankrupt, OTPP has decided that it would much wiser for them to steer away from cryptocurrencies and invest in more traditional options like real estate or private credit sectors instead. This decision was taken keeping their responsibility towards 330,000 teachers and school workers who rely on them for pensions across Canada