Teachers Fund Writes Off $95 Million Loss from FTX Collapse, Shuns Crypto for Real Estate Investments


The collapse of FTX, a popular cryptocurrency exchange, has left the Ontario Teachers’ Pension Plan (OTPP) with $95 million in losses. The Canadian teachers fund, with assets totaling $190 billion, has decided to write off the loss and stay away from the volatile cryptocurrency market for the time being.

FTX, which had gained popularity among crypto traders, collapsed in late 2022 when it was unable to fulfill customer withdrawal requests due to allegations of misappropriation of funds. Its former CEO, Sam Bankman-Fried, is currently facing fraud and other charges.

The OTPP’s investment in FTX amounted to only 0.05% of the fund’s total assets, but the move has still come under scrutiny given the allegations against FTX’s executives. OTPP’s CEO, Jo Taylor, has stated that the fund is still working to understand what exactly happened with FTX, and the fund will be cautious about future crypto investments.

While crypto may be off the table for the time being, the OTPP is not ruling out other investment opportunities. Nick Jansa, the fund’s investment lead for Europe, the Middle East, and Africa, says that the fund is considering real estate opportunities in Europe. Jansa notes that opportunities for long-term capital in Europe have increased, particularly in the UK, Germany, France, Spain, and the Netherlands.

Real estate investments have long been a staple of pension fund portfolios due to their stability and steady returns. With the current state of the global economy, it’s no surprise that the OTPP is looking to diversify its investments and explore new opportunities.

Residential, logistics, and life sciences properties are just a few of the real estate opportunities that the OTPP may consider. These investments provide a stable source of income for the fund, and are generally less volatile than stocks or cryptocurrencies.

The OTPP’s move away from crypto highlights the risks associated with these types of investments. While cryptocurrency has gained popularity in recent years, it remains a largely unregulated and unpredictable market. The collapse of FTX and the subsequent losses suffered by the OTPP are a reminder that even large institutional investors are not immune to the risks of cryptocurrency investments.

Despite the risks, cryptocurrency continues to gain traction as an investment option. Some investors see it as a hedge against inflation or a way to diversify their portfolios. However, the lack of regulation and transparency in the crypto market means that investors must approach it with caution.

In the wake of the FTX collapse, regulators and governments are taking a closer look at the cryptocurrency market. Countries like China and India have banned cryptocurrency altogether, while others are implementing stricter regulations to prevent fraud and protect investors.

In the US, the SEC has signaled that it will be ramping up its efforts to regulate the crypto market. The agency has already taken action against a number of crypto companies and has signaled that more enforcement actions are on the horizon.

As the crypto market continues to evolve, it remains to be seen whether institutional investors like the OTPP will return to the market. For now, the focus is on more stable and predictable investments, like real estate, that can provide a steady stream of income for years to come.

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