By crypto.news | Created at 2024-10-30 08:17:52 | Updated at 2024-10-30 15:17:35
7 hours ago
Florida chief financial officer, Jimmy Patronis, is requesting the State Board of Administration to consider including Bitcoin in Florida’s state pension funds.
On Oct. 29, Patronis sent a letter addressed to Florida State Board of Administration executive director, Chris Spencer, asking the agency that manages Florida’s pension funds to consider adding Bitcoin to their portfolios.
In Patronis’ letter, he explains that Bitcoin(BTC) is often dubbed “digital gold” which he believes could serve to diversify the state’s portfolio and provide a secure hedge against the volatility of traditional assets. Patronis also mentions a number of other states, like Wisconsin and Michigan, that have made the decision to invest part of their state pension funds into crypto.
He argues that when managing the state pensions of Floridians, the state fund should “prioritize the bottom line and ensure the best return on investment,” which is why he claims investing in Bitcoin could prove beneficial to securing retirement funds.
“This is where the potential of investing in a cryptocurrency, like Bitcoin, becomes particularly compelling,” said Patronis.
In addition, he also states that this move aligns with Florida Governor Ron DeSantis’ recent effort to block central bank digital currencies. Patronis calls crypto the “antithesis” of central currency because of its decentralized nature.
As a first step to considering crypto as an investment asset, Patronis requested the SBA to create a report on the “feasibility, risk, and potential benefits of directing a portion of state retirement system monies into digital asset classes” with the aim of providing context for lawmakers before the next scheduled legislative session.
Furthermore, he suggested that the SBA could start by creating a Digital Currency Investment Pilot Program as part of the Florida Growth Fund.
According to a Jan. 2024 report, the Florida Growth Fund is allowed to use up to 1.5% of the Florida Retirement System Trust Fund. The fund has invested around $998 million into high-growth investments from 2022 until 2023.
In July 2024, The State of Michigan Retirement System invested a total of $6.6 million into ARK 21Shares’ ARKB spot Bitcoin exchange-traded fund. Previously, it had recently reported a $99 million Bitcoin investment through BlackRock’s IBIT ETF.
Meanwhile in May 2024, the State of Wisconsin reportedly held almost $99.1 million worth of shares in BlackRock’s iShares Bitcoin Trust. According to the document, it also owned Grayscale GBTC shares valued at more than $63.3 million, which brings the total to nearly $170 million.
