Florida’s Chief Financial Officer, Jimmy Patronis, recently advocated for the inclusion of Bitcoin within the state’s pension fund strategy, aiming to position Bitcoin as a key asset in diversifying the state’s investment portfolio. Patronis has formally requested a report from Chris Spencer, Executive Director of Florida’s State Board of Administration, to explore the feasibility, risks, and potential returns of allocating a portion of state retirement funds into digital assets.
In his letter, Patronis emphasized the importance of future-proofing Florida’s investments, noting, “This report should be provided to the Board of Trustees to better inform lawmakers before the next legislative session.” His proposal aims to secure competitive returns for Floridians while hedging against the volatility of traditional asset classes, viewing Bitcoin as a type of “digital gold.”
The proposal aligns with recent trends across the U.S. in adopting digital assets. Inspired by former President Donald Trump’s proposal for a national cryptocurrency stockpile, Patronis’s initiative comes shortly after Trump’s speech at the Bitcoin 2024 convention, where he pledged to make the U.S. a leader in cryptocurrency.
The Florida State Board of Administration currently manages over 30 funds, including the Florida Growth Fund and the Florida Retirement System Trust Fund, with assets under management (AUM) totaling around $205 billion. Patronis has proposed a “Digital Currency Investment Pilot Program” under the Florida Growth Fund, aiming to expand into innovative investment classes like Bitcoin. His primary focus is to ensure that returns on state pension funds for firefighters, teachers, and police officers continue to yield substantial results.
States Setting a Trend with Crypto in Pension Investments
If implemented, Florida would join Wisconsin and Michigan as leaders in U.S. states adopting crypto into their retirement portfolios. In May, the State of Wisconsin Investment Board (SWIB), the nation’s ninth-largest pension fund, publicly disclosed a $99 million Bitcoin purchase. SWIB’s decision sets a precedent, prompting other states to consider Bitcoin ETF investments. Ohio Rep. Steve Demetriou also introduced legislation to require state retirement systems to evaluate Bitcoin ETFs.
Michigan’s retirement system has similarly ventured into digital assets, investing $6.6 million in ARK 21Shares’ spot Bitcoin ETF. This trend suggests a growing acceptance of cryptocurrency as a valuable addition to pension fund portfolios, enhancing diversification and exploring new avenues for growth.
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