Florida State CFO Suggests Including Bitcoin In State Retirement Funds

Florida’s Chief Financial Officer Jimmy Patronis has proposed that the state agency responsible for managing retirement funds consider investing in Bitcoin.

In a letter dated 29 October 2024 , Patronis described Bitcoin as “digital gold,” suggesting it could enhance portfolio diversification and serve as a safeguard against the volatility associated with traditional asset classes.

Patronis urged the Florida State Board of Administration (SBA) to prepare a report assessing the feasibility, risks, and potential benefits of allocating a portion of the state’s retirement funds to digital assets before the next legislative session begins on March 4, 2025.

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SBA Funds Boast $205B In Assets

The SBA currently oversees more than 30 funds, including the Florida Retirement System Trust Fund, which boasted approximately $205 billion in assets as of September 30.

In his correspondence, Patronis proposed establishing a “Digital Currency Investment Pilot Program” within the Florida Growth Fund.

The fund can invest up to 1.5% of the Florida Retirement System Trust Fund and recently allocated around $998 million to high-growth investments between 2022 and 2023, as noted in a report earlier this year.

“When managing state pensions for firefighters, teachers, and police officers, it’s essential to prioritize returns and ensure the best investment outcomes for Floridians. This is where the allure of investing in cryptocurrencies like Bitcoin becomes particularly compelling,” Patronis said.

He also highlighted that this initiative would complement Florida Governor Ron DeSantis’s recent stance against central bank digital currencies (CBDCs), framing Bitcoin as the “antithesis” of centralized currency systems.

If Florida moves forward with cryptocurrency investments, it would join the ranks of states like Wisconsin and Michigan.

In May, Wisconsin’s Investment Board disclosed a $164 million investment in Bitcoin exchange-traded funds (ETFs) from Grayscale and BlackRock, representing about 0.1% of its total assets.

Similarly, in July, Michigan’s Retirement System reported owning 110,000 shares in ARK 21Shares’ ETF, constituting 0.003% of its assets.

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Jersey City’s Municipal Pension Fund To Invest In Bitcoin ETFs

Earlier this year, Jersey City’s municipal pension fund announced plans to invest in Bitcoin via exchange-traded funds (ETFs). The city’s pension fund, the Employees Retirement System of Jersey City, has been working through regulatory steps.

Although the specific ETF has not been named, Mayor Steven Fulop indicated that Jersey City’s strategy might follow a similar approach to Wisconsin’s state pension fund, which recently invested 2% of its assets in Bitcoin ETFs.

Not my normal subject matter in a post but I’ll share anyway – the question on whether Crypto/Bitcoin is here to stay is largely over + crypto/Bitcoin won. The #JerseyCity pension fund is in process of updating paperwork to the SEC to allocate % of the fund to Bitcoin ETFs… https://t.co/5iNEqRqHGM

— Steven Fulop (@StevenFulop) July 25, 2024

Notably, there has been a trend of public pension funds showing interest in cryptocurrencies, with notable examples like Wisconsin’s State of Wisconsin Investment Board making a substantial $160 million investment in spot bitcoin ETFs earlier this year.

While larger entities like the Government Pension Investment Fund of Japan have also explored the realm of bitcoin investments, smaller funds like the Houston Firefighters’ Relief and Retirement Fund have maintained crypto exposure for several years.

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