Key Points
- Florida’s CFO, Jimmy Patronis, urges the State Board of Administration to consider Bitcoin for state pension funds.
- Patronis suggests a Digital Currency Investment Pilot Program as part of the Florida Growth Fund.
Florida’s Chief Financial Officer, Jimmy Patronis, has put forward a proposal to the State Board of Administration (SBA) to consider incorporating Bitcoin into the state’s pension funds.
On October 29, Patronis sent a letter to Chris Spencer, the executive director of the Florida SBA, suggesting the inclusion of Bitcoin in the state’s pension fund portfolios.
Bitcoin as Digital Gold
In his letter, Patronis explained that Bitcoin, often referred to as “digital gold”, could help diversify the state’s portfolio and provide a hedge against traditional asset volatility. He also pointed to other states such as Wisconsin and Michigan that have invested a portion of their state pension funds in cryptocurrency.
Patronis argued that the state pension fund should “prioritize the bottom line and ensure the best return on investment.” He believes that investing in Bitcoin could be beneficial for securing retirement funds. He also noted that this move aligns with the efforts of Florida Governor Ron DeSantis to block central bank digital currencies, calling crypto the “antithesis” of central currency due to its decentralized nature.
Proposing a Digital Currency Investment Pilot Program
Patronis requested the SBA to create a report on the “feasibility, risk, and potential benefits of directing a portion of state retirement system monies into digital asset classes.” This report would provide context for lawmakers before the next legislative session.
He also suggested that the SBA could initiate a Digital Currency Investment Pilot Program as part of the Florida Growth Fund. According to a January 2024 report, the Florida Growth Fund can use up to 1.5% of the Florida Retirement System Trust Fund and has invested around $998 million into high-growth investments from 2022 to 2023.
In 2024, the State of Michigan Retirement System invested $6.6 million in ARK 21Shares’ ARKB spot Bitcoin exchange-traded fund. Meanwhile, in May 2024, the State of Wisconsin held nearly $99.1 million worth of shares in BlackRock’s iShares Bitcoin Trust. The document also revealed that Wisconsin owned Grayscale GBTC shares valued at over $63.3 million, taking the total to almost $170 million.