A Florida state pension fund has taken a bold step to align itself with US President-elect Donald Trump’s vision for a strategic bitcoin reserve.
Florida officials announced that the pension fund will invest $1.85 billion in member contributions in… Bitcoin To diversify its investment portfolio.
Exposure to Bitcoin
The president of the Florida Blockchain Business Association (FBBA) announced that $1.85 billion from Florida’s pension fund is being considered for investment in Bitcoin, a move supported by state leaders.
Florida will launch a “strategic bitcoin reserve,” FBBA President Samuel Armes said in a post, adding that the state has a high chance of creating a BTC reserve in the first quarter of next year.
Armes believes Bitcoin investing will continue because of pro-Bitcoin leaders like Florida House Speaker Danny Perez and Governor Ron DeSantis, saying Perez “understands the technology very well” while DeSantis is among the most vocal supporters of Bitcoin. -Bitcoin rulers in the United States.
Florida Will Launch a Strategic Bitcoin Reserve, Here’s How to Do It 👇
Florida has a very good chance of creating a strategic Bitcoin reserve this session, which starts in the first quarter of 2025.
Here’s what you need to know:
Florida House Speaker Danny… pic.twitter.com/JJRNU1V7ZI
– Samuel Armes (@samuelarmes) December 3, 2024
Pension Fund Turns to Cryptocurrencies
Arms suggested that one way to build a Bitcoin reserve In Florida, this is done by allowing the state pension fund to invest $1.85 billion in Bitcoin.
“Leverage our $185.7 billion pension fund to allocate a small percentage to Bitcoin as an alternative.” Hedging against inflation“Armis said in a post.
The FBBA president explained that it would not be the first time Florida has invested in digital assets using the pension fund because the state has already made investments in Bitcoin and crypto-related assets through this fund.
He explained that the fourth largest pension fund in the United States could use 1% of its fund to create a Bitcoin reserve, providing the retirement savings program with an opportunity for diversification and exposure to the growing cryptocurrency market.
“The pension fund allocates its money to hedge funds, and some of these hedge funds have bought various Bitcoin stocks (miners, MSTR, Coinbase as examples) while also buying liquid tokens,” he added.
$800 million in cryptocurrencies
Florida is not new to the digital assets space as it already has $800 million in cryptocurrency investments.
Florida Chief Financial Officer Jimmy Patronis has urged other pension funds to try investing their money in Bitcoin, adding the top cryptocurrency to their state’s investment portfolio.
“Crypto is not going anywhere. It will continue to expand, and it would be foolish not to exploit its opportunities there,” Patronis said, noting the need to prepare for the growth of digital currencies.
However, some critics have expressed concerns about the country’s plans to invest in Bitcoin, warning of the volatility of the cryptocurrency.
Charles Bobrinskoy of Ariel Investments argued that bitcoin is a “momentum-driven bubble,” adding that its price is unstable and has no real value.
Meanwhile, state officials defended the move, believing Bitcoin to be a “good long-term investment” and a better option to protect against traditional financial risks.
Featured image from Business Standard, chart from TradingView