Swedish public pension funds have invested a whole lot of thousands and thousands of kronor in a cryptocurrency firm that has misplaced 87 p.c of its share worth, Swedish each day Dagens Nyheter (DN) reported on Saturday.
4 public pension funds, which handle the pension cash on behalf of the Swedish public, have invested greater than 200 million Swedish kronor (19 million U.S. {dollars}) in Coinbase, a cryptocurrency buying and selling firm, in response to the report.
Particulars of what number of shares have been purchased and bought weren’t revealed. However DN reported a dismal image of their funding within the cryptocurrency economic system after the funds’ semi-annual stories had been reviewed.
The Swedish pension funds have invested in shares of Coinbase, whose share value has fallen as the worth of bitcoin plummeted. A bitcoin has misplaced round 70 p.c of its worth this yr.
Economist Claes Hemberg advised DN that the economic system round cryptocurrencies was very unsure and unpredictable.
“There is no such thing as a stability, no exercise that creates any worth. It’s pure hypothesis and guesswork. Up to now it hasn’t gone so properly,” Hemberg mentioned.
Coinbase was listed on the Nasdaq final yr. (1 Swedish krona = 0.097 U.S. greenback)