Florida Finance Director Tells Pension Funds to Consider Bitcoin Investments
Date: 2024-10-30 Author: Henry Casey Categories: IN WORLD
He believes that including Bitcoin in investment strategies will allow pension funds to diversify their assets and protect themselves from fluctuations in traditional markets.
Patronis recommended that the Board of Governors conduct a study that would assess the feasibility, risks, and potential benefits of investing a portion of the state pension fund’s assets in cryptocurrencies. A report on the results of this analysis is expected before the next legislative session, which will take place on March 4, 2025.
The Board of Governors oversees more than 30 funds, including the Florida Retirement System Fund, which had assets valued at about $205 billion as of the end of September. Patronis proposed creating a pilot program for investing in crypto assets as part of the Florida Growth Fund initiative, which allows up to 1.5% of the pension system to be allocated to new investment areas.
“When managing pension funds for public service employees such as firefighters, teachers, and police officers, it is important to focus on maximizing returns for Floridians. Bitcoin investments can provide such opportunities,” Patronis said.
It is worth noting that U.S. Senator Cynthia Lummis has previously proposed adding Bitcoin and other cryptocurrencies to pension plans. In turn, the Arizona Senate began considering the possibility of including Bitcoin exchange-traded funds in the state’s pension funds in March.
