Florida’s CFO has expressed a desire to see Bitcoin become part of the investment strategy for the state’s pension funds.
According to Florida’s CFO and fire marshal, Jimmy Patronis, he builds on Donald Trump’s recent proposal for establishing a national Bitcoin stockpile in his letter.
However, with a rise in U.S. states adopting crypto, Florida’s CFO, Jimmy Patronis, wants the retirement fund agency to contemplate investing in Bitcoin.
“Bitcoin is often called ‘digital gold,’ and it could help diversify the state’s portfolio and provide a secure hedge against the volatility of other major asset classes,” wrote Patronis in a letter to Florida State Board of Administration executive director Chris Spencer on Oct. 29.
In a letter, Patronis requested the SBA to evaluate the feasibility, risks, and advantages of directing a portion of retirement funds into digital assets and to complete the report by the upcoming legislative session on March 4, 2025.
As of September 30, the Florida SBA manages over 30 funds, including the Florida Retirement System Trust Fund, which holds roughly $205 billion in assets under its management.
In his letter, Patronis recommends that the SBA consider launching a “Digital Currency Investment Pilot Program” under the Florida Growth Fund.
With permission to tap into up to 1.5% of the Florida Retirement System Trust Fund, the fund invested roughly $998 million in high-growth ventures during 2022-2023, according to a report published in January.
“When managing state pensions for firefighters, teachers, and police officers, it’s also essential to prioritize the bottom line and ensure the best return on investment for Floridians. This is where the potential of investing in a cryptocurrency, like Bitcoin, becomes particularly compelling,” added Patronis.
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He also notes that the measure aligns with Florida Governor Ron DeSantis’s recent opposition to central bank digital currencies (CBDCs), remarking that crypto stands as the “antithesis” of central currency.
If Florida decides to invest in crypto assets, it would join Wisconsin and Michigan, where state retirement funds already include crypto.
In May, the State of Wisconsin Investment Board (SWIB) reported that it invested $164 million in spot Bitcoin exchange-traded funds (ETFs) provided by Grayscale and BlackRock, with this crypto stake comprising around 0.1% of its total assets under management.
The State of Michigan Retirement System revealed in July that it had invested in Bitcoin, acquiring 110,000 shares in the ARK 21Shares ETF, constituting about 0.003% of its overall managed assets.
