Florida official wants Bitcoin included in state pension funds
Florida Chief Financial Officer Jimmy Patronis wants the agency that manages the state’s retirement funds to consider investing in Bitcoin — joining a growing number of American states adding crypto to their portfolios.
“Bitcoin ( BTC ) is often called ‘digital gold,’ and it could help diversify the state’s portfolio and provide a secure hedge against the volatility of other major asset classes,” wrote Patronis in an Oct. 29 letter to the Florida State Board of Administration’s executive director, Chris Spencer.
Patronis’ letter urges the SBA to “provide a report on the feasibility, risk and potential benefits of directing a portion of state retirement system monies into digital asset classes” and to do so before the next legislation session, scheduled for March 4, 2025.
Source: Jimmy Patronis
Florida’s SBA manages over 30 funds, including the Florida Retirement System Trust Fund — which has about $205 billion in assets under management as of Sept. 30.
In his letter, Patronis suggested that the SBA could create a “Digital Currency Investment Pilot Program” as part of the Florida Growth Fund.
This fund is allowed to use up to 1.5% of the Florida Retirement System Trust Fund and has invested $998 million into high-growth investments between 2022 and 2023, according to a report in January.
“When managing state pensions for firefighters, teachers, and police officers, it’s also essential to prioritize the bottom line and ensure the best return on investment for Floridians. This is where the potential of investing in a cryptocurrency, like Bitcoin, becomes particularly compelling,” added Patronis.
Related: Florida crypto tax friendliest among all US states
The executive also said that the move would align with Florida Governor Ron DeSantis’ recent effort to block central bank digital currencies (CBDCs), noting that crypto is the “antithesis” of central currency.
Jimmy Patronis requests the SBA produce a report about the potential of investing in Bitcoin. Source: Florida CFO
If Florida decides to invest in crypto, it would join states like Wisconsin and Michigan, which have added crypto assets to their respective state retirement funds.
In May, The State of Wisconsin Investment Board (SWIB) reported it had invested $164 million in spot Bitcoin exchange-traded funds (ETFs) offered by Grayscale and BlackRock, with the crypto play amounting to about 0.1% of its total assets under management.
Months later, in July, the State of Michigan Retirement System also disclosed investments in Bitcoin , with 110,000 shares in ARK 21Shares’ ETF, at 0.003% of its assets under management.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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