Florida CFO Jimmy Patronis Urges State Pension Fund to Explore Bitcoin Investment

Jimmy Patronis, the chief financial officer of Florida, has proposed the state agency looking behind its pension funds to consider investing in Bitcoin.

Florida’s chief financial officer has urged the state agency overseeing its pension funds to consider investing in Bitcoin as part of the funds.

Key Points

Jimmy Patronis, the chief financial officer of Florida, has proposed the state agency looking behind its pension funds to consider investing in Bitcoin. This will allow Florida to join several other US states in seeking exposure to Bitcoin BTC $71 712 24h volatility: 1.2% Market cap: $1.42 T Vol. 24h: $58.43 B as part of their pension funds.

On Tuesday, October 29, Patronis penned a letter to Florida State Board of Administration (SBA) executive director Chris Spencer urging them to “provide a report on the feasibility, risk and potential benefits of directing a portion of state retirement system monies into digital asset classes.” He also asked the SBA to do this before the next legislation to happen in March 2025. Patronis wrote:

“Bitcoin 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”.

The Florida State Board of Administration as of now manages a total of 30 funds that include the Florida Retirement System Trust Fund, with $205 billion in assets under management.

In his letter, Patronis proposed that the SBA establish a “Digital Currency Investment Pilot Program” within the Florida Growth Fund. This fund, which can allocate up to 1.5% of the Florida Retirement System Trust Fund, invested approximately $998 million in high-growth assets between 2022 and 2023, according to a January report. He added:

“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”.

The executive added that this move aligns with Florida Governor Ron DeSantis's recent efforts to oppose central bank digital currencies (CBDCs). He emphasized that cryptocurrency represents the “antithesis” of centralized currency.

Will Florida Join Other US States in Bitcoin Adoption?

If the Florida pension fund finalizes its Bitcoin adoption plan, it will join other states like Michigan and Wisconsin. These states have already added crypto assets to their respective state retirement funds.

In May, the State of Wisconsin Investment Board (SWIB) disclosed a $164 million investment in spot Bitcoin exchange-traded funds (ETFs) from Grayscale and BlackRock, representing approximately 0.1% of its total assets under management.

Similarly, in July, the State of Michigan Retirement System revealed an investment in Bitcoin, holding 110,000 shares in ARK 21Shares' ETF, amounting to about 0.003% of its assets under management.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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