With the recent bankruptcy of FTX, one the largest cryptocurrency exchange platforms, new questions arise regarding how much exposure public pension funds have, or should have, to FTX or cryptocurrencies in general. The crypto market is down 70-90% from last year (depending on the coin), and the stock market is down 15% from last year, in comparison. The market downturn, along with the general volatility in investment returns over the past couple of years, is a vivid reminder that public pension systems need to take a responsible, cautious approach to investing and should not take risks chasing higher yields.Â
Public pension
