Florida CFO urges $205 billion pension fund to consider Bitcoin
Florida’s Chief Financial Officer, Jimmy Patronis, has called on the agency managing the state’s retirement funds to explore investing in Bitcoin (CRYPTO:BTC).
In a letter addressed to the Florida State Board of Administration (SBA) executive director, Chris Spencer, on October 29, Patronis suggested adding Bitcoin to diversify the state’s portfolio and serve as a hedge against the volatility of other asset classes.
Patronis described Bitcoin as “digital gold,” emphasizing its potential to strengthen the state’s investments.
He requested the SBA to evaluate the feasibility, risks, and potential benefits of allocating a portion of the state retirement system’s funds to digital assets.
Patronis asked for a comprehensive report on this matter to be submitted before the next legislative session on March 4, 2025.
The SBA currently manages over 30 funds, including the Florida Retirement System Trust Fund, which holds approximately $205 billion in assets as of September 30.
Patronis proposed creating a “Digital Currency Investment Pilot Program” under the Florida Growth Fund, which can allocate up to 1.5% of the Retirement System Trust Fund for high-growth investments.
The fund invested around $998 million in such ventures between 2022 and 2023.
“When managing state pensions for firefighters, teachers, and police officers, it’s 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,” wrote Patronis.
Patronis also aligned the proposed move with Florida Governor Ron DeSantis’s stance against central bank digital currencies (CBDCs), describing cryptocurrencies as the “antithesis” of centralized currency systems.
If adopted, Florida would join other states like Wisconsin and Michigan, which have already included crypto in their state pension funds.
According to the State of Wisconsin Investment Board (SWIB), it invested $164 million in Bitcoin spot ETFs earlier this year, while the Michigan Retirement System disclosed its purchase of 110,000 shares in ARK 21Shares’ Bitcoin ETF.
At the time of reporting, the Bitcoin price was $72,265.64.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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