Florida Chief Financial Officer Jimmy Patronis is asking the state Board of Supervisors to consider including Bitcoin in Florida’s state pension fund.
On October 29, Patronis sent a letter to Chris Spencer, executive director of the Florida Board of Supervisors, asking the agency that manages Florida’s pension funds to consider adding Bitcoin to its portfolio. I requested that.
In Patronis’ letter, Bitcoin (BTC), often referred to as “digital gold,” could diversify the state’s portfolio and serve as a safe hedge against the volatility of traditional assets. He explains that he believes. Patronis also mentioned a number of other states that have decided to invest a portion of their state pension funds in cryptocurrencies, including Wisconsin and Michigan.
He argued that the state fund should “prioritize returns and ensure the highest return on investment” when managing Floridians’ state pensions, which is why investing in Bitcoin can be beneficial for securing retirement funds. It is argued that there is a possibility that
“This is where the potential for investing in cryptocurrencies like Bitcoin becomes particularly attractive,” Patronis says.
He also said the move is in line with Florida Governor Ron DeSantis’ recent efforts to block central bank digital currencies. Patronis calls cryptocurrencies the “antithesis” of central currencies due to their decentralized nature.
As a first step toward considering cryptocurrencies as an investment asset, Patronis told the SBA, in order to provide context, “the feasibility of directing a portion of state retirement system funds to the digital asset class. It requested a report on the risks, risks and potential benefits. To members of Congress before the next scheduled legislative session.
Additionally, he suggested that the SBA could start by creating a digital currency investment pilot program as part of the Florida Growth Fund.
According to the January 2024 report, the Florida Growth Fund is allowed to use up to 1.5% of the Florida Retirement System Trust Fund. The fund invested approximately $998 million in high-growth investments from 2022 to 2023.
In July 2024, Michigan Retirement System invested a total of $6.6 million in ARK 21Shares’ ARKB Spot Bitcoin Exchange Traded Fund. Previously, the company recently reported a $99 million Bitcoin investment through BlackRock’s IBIT ETF.
Meanwhile, in May 2024, the state of Wisconsin reportedly held approximately $99.1 million worth of shares in BlackRock’s iShares Bitcoin Trust. The company also owns more than $63.3 million worth of Grayscale GBTC stock, for a total of nearly $170 million, according to the document.
