The Kansas Legislature is reviewing a proposed law that could allow the Kansas Public Employees Retirement System (KPERS) to invest up to 10% of its funds in Bitcoin exchange-traded products (ETPs). The bill outlines rules and limitations to ensure these investments prioritize the financial security of members and beneficiaries.
The bill reads: “The board may invest and reinvest moneys of the fund in bitcoin exchange-traded products issued by an investment company registered in Kansas. The total of bitcoin investments shall not exceed 10% of the total investment assets of the fund.”
The rule allows Bitcoin investments in the retirement fund to exceed 10% of the fund’s total market value if the increase happens naturally due to market changes.
However, no new investments can be made in Bitcoin until the value drops below 10%. If the investments go over 10%, there is no requirement to sell them unless doing so is beneficial and aligns with prudent financial management for the system’s members and beneficiaries.
KPERS, which manages contributions from employees and employers, aims to provide retirement benefits while responsibly investing its funds. If passed, this law would represent a big shift, adding Bitcoin-based products to the system’s investment options.
A Bitcoin Exchange-Traded Fund (ETF) is a financial product that tracks the price of Bitcoin and is traded on traditional stock exchanges. Instead of directly owning Bitcoin, investors buy shares in the ETF, which holds Bitcoin or Bitcoin-related assets.
This allows investors to gain exposure to Bitcoin without needing to manage or secure the cryptocurrency themselves. Bitcoin ETFs make it easier for traditional investors to access the crypto market, as they operate under familiar regulations and are integrated into conventional investment portfolios.
While Kansas is going for Bitcoin ETF, the growing demand for an investment, especially a Bitcoin Reserve, both at the state and national levels in the U.S., reflects a broader trend of seeking alternative financial strategies amid inflationary concerns.
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President Donald Trump’s vocal support for Bitcoin as a financial hedge has added momentum to this movement.
He advocates for Bitcoin’s potential as a stable store of value, especially during economic uncertainty. This perspective aligns with efforts by states like Texas and Oklahoma to consider Bitcoin as part of their reserves.
Interest in Bitcoin has grown, not just among individual investors but also among policymakers and state governments. They see it as a way to safeguard against inflation and currency devaluation.
By early 2025, at least ten U.S. states have proposed or confirmed plans to create Bitcoin reserves. Oklahoma introduced the Strategic Bitcoin Reserve Act in January 2025. States such as Texas, Ohio, New Hampshire, and North Dakota are also moving forward with similar initiatives.
The Kansas bill signals a shift in how state governments view Bitcoin. Once considered a risky investment, it is now seen as a tool for financial stability, especially amid inflation and other economic challenges.
