In a public letter to the Florida State Board of Administration, the entity which manages $245 billion in pension assets, Jimmy Patronis, Florida’s chief financial officer, called on the board to add cryptocurrencies to the state’s pension holdings.
Patronis, appointed CFO in 2017 as a replacement and then elected in both 2018 and 2022, requested the SBA develop a report on the risks, feasibility and potential benefits of adding cryptocurrencies to the SBA holdings.
“The State Board of Administration maintains a Florida Growth Fund that allows for more innovative and emerging investments, and a Digital Currency Investment Pilot Program could be a perfect fit, offering potential benefits we cannot afford to overlook,” Patronis’s letter stated.
Some pension funds, including the State of Wisconsin Investment Board, have exposure to cryptocurrency through exchange-traded funds. The SWIB purchased more than $160 million in two Bitcoin ETFs earlier this year. The Michigan Retirement System also purchased $6.6 million in Bitcoin ETFs this year.
“When managing state pensions for firefighters, teachers, and police officers, it’s also essential to prioritize the bottom line and ensure the best return on investment for Floridians,” Patronis wrote in the letter. “This is where the potential of investing in a cryptocurrency, like Bitcoin, becomes particularly compelling. There’s no telling what the future of cryptocurrency will be, but it’s important that the State of Florida stays ahead of the curve when considering new investments and providing the best returns for Floridians.”
The SBA had no immediate response to a request for comment.
Related Stories:
Pensions in Michigan, Jersey City Add Bitcoin ETFs to Portfolios
Wisconsin Pension Buys $160 Million in Bitcoin ETFs
Where Does a Bitcoin ETF Fit in an Allocator’s Portfolio?
Tags: Bitcoin, Crypto, Florida, Florida State Board of Administration, Jimmy Patronis