The current economic environment has made it difficult for pension funds to sustain their expected rate of return. The U.S. Federal Reserve has continued along the path of cutting rates to zero and it seems likely to keep them there for at least a couple of years. This means pension funds may be forced to explore other strategies to increase their returns.
Morgan Creek Digital co-founder Anthony Pompliano has suggested that pension funds allocate a small amount of 1 to 5 percent of their portfolios to Bitcoin (BTC). Such a move “would increase the risk-adjusted returns for a public pension fund,” according to Pompliano.