Jersey City Mayor Allocates Pension Fund to Bitcoin ETFs
Jersey City Mayor Allocates Pension Fund to Bitcoin ETFs
In a bold move, Jersey City Mayor Steven Fulop has announced that the city’s pension fund will be investing in Bitcoin ETFs. This decision comes after Fulop expressed his belief in cryptocurrency, marking a significant shift in the city’s investment strategy.
The announcement was made on July 25, with Mayor Fulop revealing that the city is updating paperwork with the SEC to allow for Bitcoin ETF investments. While the exact percentage of the pension fund allocated to Bitcoin was not disclosed, Fulop mentioned that it would be similar to the 2% allocation of the Wisconsin Pension Fund. The process is expected to be completed by the end of summer.
Fulop emphasized his confidence in the long-term potential of crypto and Bitcoin, likening blockchain technology to the transformative impact of the Internet. This move by Jersey City follows in the footsteps of other pension funds, such as the Houston Firefighters’ Relief and Retirement Fund and Fairfax County, Virginia’s pension funds, which have been involved in crypto investments for several years.
The interest in crypto ETFs is on the rise, with the SEC approving the listing and trading of spot Bitcoin ETFs on U.S. exchanges earlier this year. Despite this approval, only a few publicly run pension funds, like those in Wisconsin and Jersey City, are exploring these investment opportunities.
Bloomberg Senior ETF analyst Eric Balchunas noted that the rapid interest in spot Bitcoin ETFs suggests a strong launch, indicating that more institutions are likely to follow suit. Globally, public pension plans, including Japan’s Government Pension Investment Fund, are also showing interest in cryptocurrencies, signaling a growing trend in the investment landscape.
As Jersey City takes this bold step towards investing in Bitcoin ETFs, it sets a precedent for other institutions to consider diversifying their portfolios with digital assets. Mayor Fulop’s decision reflects a forward-thinking approach to financial management and a recognition of the potential of cryptocurrencies in the modern economy.