New Jersey Announces Plans to Invest City’s Pension Fund in Bitcoin ETFs

Jersey City plans to amend its pension fund regulations to incorporate Bitcoin exchange-traded funds (ETFs). Mayor Steven Fulop announced the initiative on July 25.

Not my normal subject matter in a post but I’ll share anyway – the question on whether Crypto/Bitcoin is here to stay is largely over + crypto/Bitcoin won. The #JerseyCity pension fund is in process of updating paperwork to the SEC to allocate % of the fund to Bitcoin ETFs… https://t.co/5iNEqRqHGM

— Steven Fulop (@StevenFulop) July 25, 2024

This development marks the city’s first significant step toward embracing virtual currencies as a viable investment option for public funds.

Jersey City Invests in Bitcoin ETFs

Mayor Fulop, who has led Jersey City since 2013, revealed the city’s plans to include BTC ETFs in its documentation with the US SEC. This decision places Jersey City, the second-largest city in New Jersey, at the forefront of a financial revolution slowly gaining momentum across the US.

Jersey City’s move mirrors a recent decision by the Wisconsin Pension Fund, which gave 2% of its $156 billion assets to Bitcoin ETFs in the second quarter of the year.

This precedent suggests a growing trend among public pension funds to diversify their portfolios with cryptocurrency investments. Financial experts predict that other states will soon follow suit, recognizing the potential benefits of such diversification.

Since its launch, Bitcoin ETFs have demonstrated remarkable performance. BlackRock’s IBIT ETF has surpassed Nasdaq’s QQQ in inflows for the year, highlighting the increasing investor interest in Bitcoin.

Fulop, a vocal proponent of blockchain technology, emphasized its transformative potential beyond just digital assets.

His vision aligns with a growing sentiment that blockchain technology could revolutionize various sectors by providing transparency, enhanced security, and efficiency.

Meanwhile, the SEC’s approval of spot Bitcoin ETFs on US exchanges earlier this year has paved the way for public pension funds to explore these investments.

This regulatory green light has been crucial in legitimizing Bitcoin ETFs. Besides that, it has encouraged public entities like Jersey City to consider these offerings as part of their investment strategies.

Limited Adoption and Future Change

Despite promising developments, Jersey City and Wisconsin are among the few public entities actively pursuing Bitcoin ETF investments.

More public pension funds are expected to follow in the third quarter, driven by the need to diversify. Fulop did not mention immediate plans to invest in other virtual currency or related assets like Ethereum ETFs.

Meanwhile, Major financial institutions like JPMorgan Chase and Wells Fargo have shown limited engagement with Bitcoin ETFs, as evidenced by their combined investments totaling below $1 million.

As Jersey City proceeds with its SEC paperwork, implementing Bitcoin ETFs in the pension fund is expected to be completed by the end of the summer.

Mayor Fulop expressed confidence that such investments would become more commonplace, reflecting a broader acceptance of crypto in public finance.

The post New Jersey Announces Plans to Invest City’s Pension Fund in Bitcoin ETFs appeared first on The Tech Report.