Two pension systems in Fairfax County, Virginia, USA, are investing $35 million in a cryptocurrency fund from asset manager VanEck.

Investments in the New Finance Income Fund are open to accredited investors. The fund generates income through stablecoin and fiat loans secured by digital assets.

The investment will include Officers’ Retirement Systems (ERS) and County Police Officers’ Retirement Systems (PORS).

These structures first invested in crypto assets in 2019, with a total of $21 million invested in the Morgan Creek crypto fund.

ERS investment director Andy Spellar told Cointelegraph that his stake in the VanEck fund will be $25 million and the funds will be rolled out from July to September “depending on market conditions”.

Spellar said the firm has already received first tranches of $10 million and $5 million from ERS and PORS, respectively.

“We look at this area as a diversifier with our loan/high-yield portfolios and performance periods in particular on short-term (1-3 months) positions,” Spellar said.

Regarding the current situation in the market, he noted that the depth of decline in the crypto industry has not surpassed a similar fall in other fast growing industries. Spellar expressed confidence in the long-term that “more things will go digital in the future, including traditional assets.”

“Such markets are getting rid of weak players and technologies, which is generally a positive trend,” he added.

Recall that in 2021 Canadian pension fund Caisse de dépôt et Placement du Québec spearheaded a $750 million Series B funding round for crypto lender Celsius with WestCap.

According to The Wall Street Journal, in June 2022, the structure refused to provide additional funding to the crypto company, which was experiencing a liquidity crisis.

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