STOCKHOLM, Dec. 3 (Xinhua) — Swedish public pension funds have apparently invested hundreds of millions of kronor in a crypto company that has seen a huge drop of 87% in its share value. Swedish Daily Dagens Nyheter (DN) reported this news.
Four public pension funds that are responsible for managing the government-backed pension money have invested more than SEK 200 million (US$ 19 million) in Coinbase, a cryptocurrency trading firm.
The exact number of shares that were purchased and sold was not revealed. However, DN has studied the semi-annual reports of the funds and has come to the realization that their crypto investment is not doing too well.
The Swedish pension funds have invested in shares of Coinbase, whose share price has been hit hard due to the falling value of Bitcoin this year. About 70% of Bitcoin’s worth has been lost.
Economist Claes Hemberg told DN that the crypto economy is incredibly uncertain and unpredictable. “There’s no stability, no value-creating activity. It’s pure speculation and guesswork. So far, it hasn’t gone so well,” Hemberg said.
Coinbase was listed on Nasdaq last year. (1 Swedish krona = 0.097 US dollar)
