Key Points
- Florida’s CFO, Jimmy Patronis, suggests the state’s pension funds consider investing in Bitcoin.
- Patronis has proposed a “Digital Currency Investment Pilot Program” within the Florida Growth Fund.
Jimmy Patronis, Florida’s chief financial officer, has suggested that the state agency managing pension funds should consider investing in Bitcoin.
This would enable Florida to follow in the footsteps of other US states that are exploring Bitcoin as part of their pension funds.
Patronis’ Proposal
On October 29, Patronis wrote a letter to the Florida State Board of Administration (SBA) executive director, Chris Spencer.
He urged them to provide a report on the feasibility, risk, and potential benefits of directing a portion of state retirement system funds into digital asset classes.
He also asked the SBA to complete this before the next legislation set 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 currently manages a total of 30 funds, including the Florida Retirement System Trust Fund, with $205 billion in assets under management.
Proposed Digital Currency Investment Pilot Program
In his letter, Patronis suggested 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”.
Patronis also stated 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.
Other US States and 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 incorporated crypto assets into 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.
