The third-largest pension fund in Canada might undergo main losses as a part of the FTX fallout.
The Ontario Academics’ Pension Plan was amongst a handful of traders that participated in a $400 million Collection C funding spherical FTX held in January. SoftBank, Lightspeed Enterprise Companions, Steadview Capital, and Paradigm have been amongst different institutional traders that participated within the spherical.
Dan Madge, a spokesperson for the pension fund, declined to say how massive the funding was. Nonetheless, Madge famous that FTX was not included within the pension fund’s record of investments printed in its 2021 annual report. The fund disclosed $200 million in investments for the 12 months. Madge mentioned:
“Given the fluid nature of the scenario we now have no remark proper now.”
The pension fund’s publicity to FTX might be bigger than the January funding. On the time, FTX mentioned that each one traders concerned within the Collection C, together with the fund, additionally participated within the FTX.US Collection A funding spherical which valued the corporate at $8 billion.
Sam Bankman-Fried, the CEO of FTX and Alameda Analysis, mentioned yesterday that FTX.US has not been affected by the fallout and can stay a separate entity that gained’t be acquired by Binance if the deal goes by means of.
In response to Canadian media, this isn’t the primary time a significant pension fund within the nation suffered losses within the crypto area. In August, Caisse de dépôt et placement du Québec worte off its $150 million funding in Celsius. Caisse is without doubt one of the largest institutional traders in Canada, managing a number of pension plans and insurance coverage applications in Quebec. The corporate managed $391.6 billion in property as of June 2022.
The fund at present manages over $242 billion in internet property, and its funding within the $400 million funding spherical may not be massive sufficient to pressure the fund. Nonetheless, the fund might see fairly a little bit of media blowback that might lead to elevated regulatory scrutiny over investments within the crypto area.
