Bitcoin is making its way into the halls of government. Jersey City’s fund is set to invest in cryptocurrency ETFs, a move that signals growing acceptance of digital assets.
Mayor Steven Fulop announced Thursday that Jersey City will invest a portion of its pension fund in Bitcoin ETFs. While the amount is relatively small, this decision is another milestone for cryptocurrency adoption, joining other government entities like Wisconsin’s pension fund.
Fulop mentioned that the city’s pension fund, the Employees Retirement System of Jersey City, is updating its paperwork with the U.S. Securities and Exchange Commission (SEC) to allocate a portion of the fund to bitcoin (BTC) ETFs.
This investment is anticipated to be finalized by the end of the summer. While Fulop did not specify the exact percentage of the pension fund’s assets that will be allocated to bitcoin ETFs, he indicated it would be similar to the 2% allocation made by Wisconsin’s state pension fund earlier this year. He did not disclose which bitcoin ETF Jersey City is considering.
Moreover, the mayor expressed his long-standing belief in crypto and blockchain technology, comparing its significance to that of the internet. Interest in bitcoin from public pension funds is gradually increasing.
For instance, Wisconsin’s public pension plan, the State of Wisconsin Investment Board, made a $160 million investment in spot bitcoin ETFs earlier this year. New filings show it purchased millions worth of BlackRock’s Bitcoin Trust in the first quarter of the year.
Additionally, smaller pension funds like the Houston Firefighters’ Relief and Retirement Fund have been involved in crypto investments for several years.
Fairfax County, Virginia, pensions have also invested in crypto through VanEck’s New Finance Income Fund, which became a creditor to Genesis during its bankruptcy. Internationally, Japan’s $1.4 trillion Government Pension Investment Fund, the largest in the world, requested information on bitcoin investments earlier this year. Fulop believes that over time, more pension funds will include crypto in their portfolios.
