Following news of the FTX scandal, the Ontario Teachers’ Pension Plan (OTPP), the third-largest organization of its kind in the North American country, was among the very first to step up to reveal that she invested in the crypto exchange. After FTX filed for bankruptcy, the fund obviously wants to move on. At the same time, his investment represents only 0.05% of his assets under management. Decryption.
The impact of this investment in FTX is marginal
On Friday, the Ontario Teachers’ Pension Plan made a announcement regarding his investment in the FTX crypto exchange. The retirement giant has decided to depreciate its $95 million investment in the platform. This represented 0.05% of the total net assets of the fund, which is the third largest in Canada. Indeed, it manages nearly $250 billion in assets, for more than 330,000 teachers.
As a reminder, the fund initially invested $75 million in FTX International and FTX.US in October 2021. Then, it injected an additional $20 million into FTX.US last January. These investments were made through its subsidiary Teachers’ Venture Growth (TVG).
“The financial loss associated with this investment will have a limited impact on the Scheme. This, given its size in relation to our total net assets and our solid financial position. However, we are disappointed with the outcome of this investment. We take all losses seriously and will use this experience to further strengthen our approach. »
This is not the first time that a major Canadian pension fund has lost money in cryptos. Last August, Caisse de Dépôt et Placement du Québec (with over $300 billion in assets under management) announced a $150 million loss in crypto lender Celsius Network. After this disappointing investment, the fund announced that it would no longer be exposed to cryptos.
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