Florida CFO pushes for Bitcoin in state pension fund

Florida Chief Financial Officer (CFO) Jimmy Patronis wants to include Bitcoin (BTC) in the state's pension fund investments.

To this end, he sent a formal request to Chris Spencer, executive director of the Florida State Board of Governors, citing the need for a digital currency investment pilot program.

CFO wants a Bitcoin feasibility study

In his letter, Patronis explained the reasons for including Bitcoin in the state's portfolio. Florida's uniform triple-A bond rating, record state reserves and an economy that would rank it 16th in the nation globally.

According to him, these factors put the state in a great position to consider new investment strategies, with Bitcoin being a good tool to preserve the volatility that is often present in traditional asset classes.

He noted that adding the world's largest and oldest digital asset to the state's investment portfolio would protect key public servants by insuring their pensions against broader market volatility.

“When managing state pensions for firefighters, teachers and police officers, it's important to prioritize the bottom line and ensure the best return on investment for Floridians. The potential to invest in cryptocurrencies such as Bitcoin will be particularly interesting.

The CFO asked Spencer and the state Board of Governors to review the feasibility of integrating Bitcoin investments with Florida's public funds. He said such exploration would determine the risks and benefits associated with the property and provide lawmakers with the information needed to make an informed decision before the next legislative session.

Proposal inspired by Donald Trump

In support of the proposal, Patronis cited recent moves by states such as Wisconsin and Michigan to allocate their pension funds to bitcoin.

Wisconsin has $164 million invested in Bitcoin ETFs offered by Grayscale ( GBTC ) and BlackRock ( IBIT ), representing just 0.1% of its pension assets. He later added another 447,651 IBIT shares, announcing his complete exit from Greyscale. Michigan also jumped on the bandwagon by buying shares in ARK 21's spot Bitcoin ETF.

Similar measures have been launched in other states, including Arizona, where lawmakers are encouraging pension fund managers to include crypto assets in their portfolios.

Additionally, the state's top executive name-dropped Donald Trump as a supporter of the proposal. He cited the Republican presidential candidate's speech at the 2024 Bitcoin Conference in Nashville, Tennessee, where he proposed a national strategic Bitcoin reserve and pledged to push the United States to the forefront of the global crypto industry.

Patronis also pointed out that Florida Governor Ron DeSantis' move to strengthen the state's crypto-friendly stance by passing legislation on Central Bank Digital Currency (CBCC) is the opposite of what Bitcoin and other cryptocurrencies represent.