Dear Gary,

Thank you for taking the time to read my work and thank you for making the effort to share your opinion on this matter.

As I am sure you are aware, I am not able to produce the “data” which you speak of necessarily because these are conversations I have had with specific pension fund managers and that data was shared with me in confidence.

What I can state however is that pension funds have and are continuing to seriously consider allocation of their sizeable assets in cryptocurrencies. I regret that this information cannot (for now) be backed by any concrete data, but rest assured that if and when such information is made available, it will (no doubt) be picked up and written about by all the mainstream media outlets. At such time, I would invite you to return to this piece and consider that the information was shared, albeit in a (as your rightly point out) speculative manner.

As March draws on, we are nearing reporting season. At such time it will be clearer which pension funds have either considered or already allocated their substantial resources to cryptocurrencies.

Again, due to confidentiality, I cannot comment on the size of such allocations, but even at 0.1% consider the implications of that.

The total market cap of cryptocurrencies currently stands around US$130 billion (on a good day).

For one segment of an average pension fund managing say US$3.0 billion or so, 0.1% represents US$3 million. As you no doubt will note, that allocation (depending on the specific cryptocurrency allocated to) could in some cases represent a significant portion of the daily trading volume.

My point of this piece was not to say that pension funds are going “all-in” on cryptocurrencies and a reading of the piece will no doubt reveal that. Instead, my intention was to highlight that institutional investors, including pension funds are now giving serious consideration to cryptocurrencies and (in some cases) have already made small allocations as part of an overall diversification strategy.

Given the relatively small sizes of a cryptocurrency investment, I merely wanted to start the discussion whether or not individuals should consider the same.

Thank you for contributing to the discussion and for raising the points which you have raised.

As always, any errors and/or omissions remain strictly mine.

Yours,

Patrick Tan