Florida Treasurer Calls for Using Retirement Funds to Invest in Bitcoin

On October 30, Florida CFO Jimmy Patronis said he wants the agency that manages the state's retirement funds to consider investing in bitcoin, becoming the third state to use retirement funds to invest in bitcoin, according to Cointelegraph. In May the Wisconsin State Board of Investments had invested $164 million in the Grayscale and BlackRock Spot Bitcoin ETFs, with cryptocurrency assets accounting for about 0.1% of its total assets under management, and in July the Michigan Retirement System also disclosed an investment in bitcoin, with a holding of 110,000 shares of the ARK 21Shares ETF, representing 0.003% of its assets under management.
In an October letter to the Florida Board of Administration, Patronis wrote, “Bitcoin, often referred to as ‘digital gold,’ could help diversify the state's investment portfolio and provide a safe hedge against the volatility of other major asset classes, and urges the Board of Administration to provide a report on the feasibility, risks, and potential benefits of placing a portion of the state's Retirement System's funds into the digital asset class.”

Florida's SBA manages more than 30 funds, including the Florida Retirement System Trust Fund, which has access to up to 1.5 percent of the Florida Retirement System Trust Fund and invests approximately $998 million in high-growth investments between 2022 and 2023.Patronis has stated that in managing state pensions for firefighters, teachers, and police officers, it is important to prioritize the The bottom line and ensuring Floridians get the best return on their investments is also important. That's where the potential for investing in cryptocurrencies like Bitcoin becomes particularly compelling.