According to the Swedish daily Dagens Nyheter (DN), public pension funds in Sweden invested hundreds of millions of kronor in a cryptocurrency firm that has seen an 87% decline in the value of its stock.
According to a study released on Saturday, four public pension funds that oversee pension funds on behalf of the Swedish public have invested more than 200 million Swedish kronor ($19 million) in Coinbase, a cryptocurrency trading firm.
No information was provided on the number of shares that were purchased and sold. However, after reviewing the funds’ semi-annual reports, DN painted a pessimistic image of their involvement in the bitcoin market, according to the Xinhua news agency.
The shares of Coinbase, whose share price has decreased along with the value of bitcoin, were purchased by the Swedish pension funds. About 70% of the value of a bitcoin was lost this year.
Claes Hemberg, an economist, told DN that the economics surrounding cryptocurrency was highly unpredictable.
“There is no stability and no worthwhile activity. It is entirely speculative and illogical. It hasn’t gone well so far,” Hemberg remarked.
Last year, Coinbase went public on the Nasdaq. 1 Swedish krona is equal to 0.09 US dollars.
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