Florida CFO wants state pension fund to invest in Bitcoin

Florida chief financial officer Jimmy Patronis is requesting that the State Board consider including Bitcoin in Florida state pension funds.

On October 29, Patronis sent a letter addressed to Chris Spencer, executive director of the Florida State Board of Regents, asking the agency that manages Florida’s pension funds to consider adding Bitcoin to their portfolios.

In his letter, Patronis explains that Bitcoin (BTC) is often referred to as “digital gold” and that he believes it can serve to diversify the government’s portfolio and provide a safe hedge against the volatility of traditional assets. Patronis also mentions some other states, such as Wisconsin and Michigan, that have decided to invest some of their state pension funds in crypto.

He argues that when managing Floridians’ state pensions, the state fund must “prioritize results and provide the best return on investment,” so he argues that investing in Bitcoin could be beneficial for securing retirement funds.

“This is where the potential of investing in a cryptocurrency like Bitcoin becomes particularly attractive,” Patronis said.

He also notes that the move is in line with Florida Governor Ron DeSantis’ recent efforts to block central bank digital currencies. Patronis calls cryptocurrency the “antithesis” of a centralized currency due to its decentralized nature.

As a first step in considering crypto as an investment asset, Patronis requested that the SBA produce a report on the “feasibility, risk, and potential benefits of directing a portion of state pension system monies into digital asset classes” to provide context. for lawmakers before the next scheduled legislative session.

He also suggested that the SBA could start by creating a Digital Currency Investment Pilot Program under the Florida Growth Fund.

The Florida Growth Fund is allowed to use up to 1.5% of the Florida Retirement System Trust Fund, according to a January 2024 report. The fund invested approximately $998 million in high-growth investments from 2022 to 2023.

In July 2024, the Michigan State Retirement System invested a total of $6.6 million in ARK 21Shares’ ARKB spot Bitcoin exchange-traded fund. It had previously recently reported a $99 million Bitcoin investment through BlackRock’s IBIT ETF.

Meanwhile, in May 2024, it was reported that the State of Wisconsin held almost $99.1 million worth of shares in BlackRock’s iShares Bitcoin Trust. The company also owns Grayscale GBTC shares worth more than $63.3 million, bringing the total to about $170 million, according to the document.