Florida’s Chief Financial Officer, Jimmy Patronis, has called on the state’s retirement fund manager to explore the potential benefits of investing in Bitcoin.
In an open letter to Chris Spencer, the executive director of Florida’s State Board of Administration (SBA), Patronis described Bitcoin as “digital gold” with the potential to diversify the state’s investment portfolio and hedge against the volatility of traditional asset classes.
The SBA currently oversees over 30 funds, including the $205 billion Florida Retirement System Trust Fund. Patrnonis urged the board to do a comprehensive evaluation of Bitcoin’s feasibility, risks, and advantages ahead of the state’s legislative session on March 4, 2025.
To facilitate an initial exploration into digital assets, Patronis proposed that the SBA create a “Digital Currency Investment Pilot Program” within the Florida Growth Fund, which currently allocates up to 1.5% of the state’s pension assets to high-growth investments. In 2022 and 2023 alone, the fund channelled nearly $998 million into growth-focused opportunities, according to a report by the Board in January 2024.
Patronis framed the move as beneficial for state employees, including teachers, firefighters, and police officers, who could see improved returns from a diversified investment portfolio. He also noted that this initiative aligns with Governor Ron DeSantis’s stance against central bank digital currencies (CBDCs), underscoring Bitcoin’s decentralized nature.
Should Florida proceed with the recommendation, it would join states like Wisconsin and Michigan, which recently diversified their holdings to include Bitcoin. Wisconsin allocated $164 million to Bitcoin ETFs from Grayscale and BlackRock, while Michigan invested in ARK 21Shares’ Bitcoin ETF.
The recommendation arrives amid broader institutional moves in digital assets. On October 23, Bloomberg reported that Australian crypto hedge fund JellyC had merged with Singapore-based Trovio Asset Management in a bid to attract larger institutional investors, including pension funds.
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