Crypto exchange FTX went bankrupt in November last year following allegations of embezzlement. In its fall, it also dragged down a large number of companies that were exposed to it. Among these is a fund for teachers in Canada: the Ontario Teachers’ Pension Plan (OTPP). Recently, the fund announced some news that would be distressing for the crypto sector.
The crypto sector loses a major investor after the FTX affair!
Last November, Teachers’ announced the write-down of a $95 million investment in FTX. The announcement was made just after the bankrupt exchange filed for bankruptcy. The $190 billion fund wanted to move on. Now, the fund wants to stay well out of the crypto sector.
In this context, Jo Taylor, CEO of Teachers’, said:We are still analyzing what exactly happened and we have to be careful“. He added that it would not be not wise for the fund to rush into another crypto investment.
It is true that the Ontario Teachers’ Pension Plan has invested only 0.05% of its total assets in FTX. However, it has come under scrutiny amid fraud charges against the exchange’s executives.
Teachers’ wants to turn to the real estate sector
Nick Jansa, Teachers’ investment manager for Europe, the Middle East and Africa, discussed the fund’s current plans. He said the company plans to focus on the real estate market in Europe.
“The opportunities we’ve seen for real estate in Europe, and I’m talking about the UK, Germany, France, Spain and the Netherlands, have increased for long-term capital that doesn’t not necessarily dependent on some of the normal market dynamics“, explained Jansa.
Reports have recently circulated that the FTX exchange is preparing to return in 2024. But, the bankrupt crypto company was quick to deny rumors of it resuming operations. She nevertheless clarified that she does not exclude the possibility of doing it one day.
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