Florida’s Chief Financial Officer Jimmy Patronis has advocated for a strategic Bitcoin reserve, urging its inclusion in state pension funds.
Patronis wrote a letter to Chris Spencer, Executive Director of the State Board of Administration, early this month. In the letter, he requested a report on the feasibility, risks, and benefits of “directing a portion of state retirement system monies into a digital asset class.”
There’s no telling what the future of #cryptocurrency will be, but FL must stay ahead of the curve on getting the best returns for Floridians. Today, I sent a letter to @FloridaSBA requesting a report on digital currencies. #BTC #Bitcoin
Read more: https://t.co/4JBL6WBtq1
— Jimmy Patronis (@JimmyPatronis) October 29, 2024
“This report should be provided to the Board of Trustees to better inform lawmakers before the next legislative session.”
Patronis emphasised that the aim is for Florida to stay ahead of the curve when considering new investments and provide the best returns for Floridians.
Per a Tuesday release, Patronis stressed that Bitcoin is “digital gold,” which would help diversify the state’s portfolio. It would provide a secure hedge against the volatility of other major asset classes, he added.
Further, Patronis says that the letter follows former President Donald Trump’s proposal for a national stockpile of cryptocurrency. In a recent speech at the Bitcoin 2024 convention, Trump promised to make the U.S. the world’s cryptocurrency leader.
Florida’s State Board of Administration manages more than 30 funds. This includes the Florida Growth Fund, which allows for more innovative and emerging investments. Besides, the Florida Retirement System Trust Fund has around $205 billion in AUM as of last month.
Patronis, in his letter, suggested the Administration to create a Digital Currency Investment Pilot Program under the Florida Growth Fund.
“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.”
Florida to Follow Wisconsin and Michigan in Adding Crypto to Retirement Funds
In May, the State of Wisconsin Investment Board (SWIB), the 9th largest pension fund in the US, bought $99 million worth of Bitcoin.
The 9th largest pension fund in the United States just bought $99 million dollars worth of #bitcoin https://t.co/hHOk8tGM6I pic.twitter.com/quzCXGOG81
— Pledditor (@Pledditor) May 14, 2024
SWIB is the first pension fund to disclose Bitcoin holdings publicly. Meanwhile, political efforts are underway to see other states buy shares of Bitcoin ETFs.
For instance, Ohio state Rep. Steve Demetriou introduced pro-crypto legislation that would, among other things, require Ohio retirement systems to evaluate Bitcoin ETFs.
Additionally, the State of Michigan Retirement System has invested $6.6 million in ARK 21Shares’ ARKB spot Bitcoin ETF.
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