The Arizona Senate has proposed adding a Bitcoin ETF to retirement portfolios
The Arizona State Senate is considering a proposal that would encourage the inclusion of Bitcoin Exchange Traded Funds (ETFs) in the state's retirement portfolios.
The resolution passed the Senate's third reading on Feb. 22 in a 16-13 vote and is now being considered for a second time by the House.
If approved, the proposal would encourage the Arizona State Retirement System (ASRS) and Public Safety Employees Retirement System (PSPRS) to consider exposure to Bitcoin ETFs in their respective portfolios, according to state filings.
The Bitcoin Retirement Resolutions were first introduced and read by the Senate on January 30, 2024.
ASRS encourages and PSPRS to monitor developments in the Bitcoin ETF industry and consider the “implications” of allocating Bitcoin ETFs to their retirement portfolios, including advising firms that offer Bitcoin ETFs approved by the Securities and Exchange Commission.
A “comprehensive report” should be sent to the Arizona State Treasurer, the President of the Senate, and the Speaker of the House of Representatives, outlining the feasibility, risks and potential benefits of increasing Bitcoin ETF exposure, and the security precautions to be taken.
According to the document, other digital asset ETFs are also being considered.
Related: Australian tax data shows growing interest in crypto for DIY retirement
Dennis Porter, CEO of Satoshi Action Fund, said the move could be seen as a strategic effort to boost portfolio diversification and reduce investment risk, adding that even a small amount of Bitcoin ETF exposure could put an asset portfolio at risk.
“In considering the #Bitcoin ETF, Arizona is looking to leverage the inherent value and potential stability offered by #Bitcoin versus traditional safe-haven investments like gold,” he explained in March. 6 X post.
Earlier this year, John Palmer, president of the Chicago Board Options Exchange, speculated that the approval of the Bitcoin ETF would “pave the way” for pension and retirement mutual funds to invest in Bitcoin through ETFs.
Magazine: Best and worst countries for crypto tax — Plus crypto tax tips
