FTX disaster affects Canadian pension fund

Time to retreat? – The Ontario pension fund had optimistically invested in FTX. The collapse of the crypto exchange has taken almost all stakeholders by surprise.

FTX shakes up even Canadian pension funds

According to a November 10 Reuters article, the Ontario Teachers’ Pension Plan (OTTP) has invested $95 million in FTX. The OTTP is the third largest pension fund in Canada. It administers the pensions of 333,000 active and retired teachers in Ontario, with more than 242 billion Canadian dollars of assets under management.

The organization would have invested less than 0.05% of its net assets, through its Teachers’ Venture Growth fund, in FTX international and FTX.US. She would thus have declared that the impact on the pension plan of any losses linked to this placement would be limited.

The FTX storm affects all players who have placed their trust in the crypto exchange and in Sam Bankman-Fried

In September this year, OTTP CEO Jo Taylor told Reuters that as a crypto exchange, FTX presented “ lowest risk profile since “everyone trades on your platform”.

Canadian pension funds are thus exposed to crypto companies, and suffer the negative consequences of bear markets.

The Caisse de depot et placement du Quebec (CDPQ), which is the second largest pension fund in Canada, had invested in Celsius. After the crypto lending platform went bankrupt, the fund decided thathe would no longer invest in cryptocurrencies.

Is the FTX Crisis Crypto’s ‘Lehman Brothers Moment’? The collapse of a giant always puts an entire industry in difficulty and even players that evolve beyond its borders, because of the risk of contagion.

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