Jersey City Mayor Allocates Pension Fund to Bitcoin ETFs
Steven Fulop, the mayor of Jersey City, New Jersey, recently made an announcement regarding the city’s pension fund. He shared that a portion of the fund’s investments will now be allocated to Bitcoin ETFs. This move marks a significant step towards embracing cryptocurrency within the city’s financial strategy.
Fulop’s Support for Cryptocurrency
Mayor Fulop has long been a supporter of cryptocurrency, although he had not previously mentioned specific assets like Bitcoin publicly. However, in a recent post on social media, he expressed his belief in the future of cryptocurrency and its potential to revolutionize the financial industry.
Jersey City’s SEC Paperwork Update
In his announcement, Mayor Fulop mentioned that Jersey City is in the process of updating paperwork with the United States Securities and Exchange Commission (SEC) to allow for investment in Bitcoin ETFs. While the exact percentage of the pension fund that will be allocated to Bitcoin was not disclosed, Mayor Fulop hinted that it would be a substantial amount.
The Wisconsin Pension Fund’s Investment in Cryptocurrency
The Wisconsin Pension Fund has recently announced a 2% allocation towards investments in cryptocurrency. This decision is part of a process that is expected to be finalized by the end of summer.
Confidence in Cryptocurrency
Mayor Fulop has expressed his strong confidence in the future of cryptocurrency, particularly Bitcoin. He believes that blockchain technology represents a significant advancement, comparable to the impact of the Internet.
Recent filings with the SEC by the State of Wisconsin Investment Board have revealed substantial investments in cryptocurrency assets. The board has allocated $100 million to BlackRock’s iShares Bitcoin Trust and nearly $64 million to the Grayscale Bitcoin Trust. Additionally, they hold shares in companies such as Coinbase, Block, Marathon Digital, and Riot Platforms.
Other pension funds, like the Houston Firefighters’ Relief and Retirement Fund, which manages around $5 billion in assets, have been active in the cryptocurrency market for several years. Similarly, pension funds in Fairfax County, Virginia, have invested in the crypto sector through VanEck’s New Finance Income Fund.
The Rise of Crypto ETF Interest
Last year, the crypto firm Genesis faced bankruptcy, highlighting the risks in the crypto market. However, despite this setback, interest in crypto ETFs is growing.
SEC Approval for Spot Bitcoin ETFs
In January, the SEC approved the listing and trading of spot Bitcoin ETFs on U.S. exchanges. While only a few publicly run pension funds in Wisconsin and Jersey City are exploring these ETFs, the approval signals a potential shift in the market.
Rapid Institutional Interest
Bloomberg’s Senior ETF analyst noted that large institutions typically take time to appear in filings for new ETFs, but the rapid interest in spot Bitcoin ETFs suggests a promising launch. This could lead to more institutions joining in, as they tend to follow each other’s moves.
Global Pension Plans Joining In
Not only in the U.S., but public pension plans globally are also showing interest in cryptocurrencies. Japan’s Government Pension Investment Fund, the world’s largest with $1.4 trillion in assets, has even requested information on Bitcoin investments, signaling a growing acceptance of crypto assets.
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