Florida’s state pension fund has made a bold move to align 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 membership dues Bitcoin diversify your investment portfolio.
Bitcoin exposure
The head of the Florida Blockchain Business Association (FBBA) announced that a $1.85 billion Bitcoin investment is being considered from Florida’s pension fund, a move supported by state leaders.
FBBA President Samuel Armes said in a post that Florida will launch a “strategic Bitcoin reserve,” adding that the state has a good chance of establishing a BTC reserve in the first quarter of next year.
Armes believes the Bitcoin investment will push through thanks to pro-Bitcoin leaders like Florida House Speaker Danny Perez and Gov. Ron DeSantis, who say Perez “understands the technology very well,” while DeSantis is one of the most professional – Bitcoin Governors in the United States.
Florida is going to launch a strategic Bitcoin reserve and here’s how we’ll do it 👇
Florida has a very good chance of creating a strategic Bitcoin reserve in this session, which begins 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 is moving to cryptocurrencies
Armes suggested that one way to build it Bitcoin Reserve in Florida is to allow the state pension fund to invest $1.85 billion in Bitcoin.
“Use our $185.7 billion pension fund to allocate a small percentage to Bitcoin as inflation protection”Armes wrote in the post.
The FBBA chief explained that this won’t be the first time Florida will invest in digital assets through its pension fund, as the state has already made investments in Bitcoin and cryptocurrency-related assets through the fund.
He explained that the fourth-largest pension fund in the United States could allocate 1% of its fund to create a Bitcoin reserve, providing a retirement savings program the opportunity to diversify and gain exposure to the growing cryptocurrency market.
“Retirees are allocating their funds to hedge funds, and some of these hedge funds have bought various stocks in the Bitcoin space (e.g. miners, MSTR, Coinbase) while also purchasing liquid tokens,” he added.
$800 million in cryptocurrencies
Florida is nothing up-to-date to digital assets as it already has $800 million in cryptocurrency investments.
Florida Chief Financial Officer Jimmy Patronis urged other pension funds to try investing their money in Bitcoin, adding the first-born cryptocurrency to his state’s investment portfolio.
“Crypto isn’t going anywhere. It will continue to grow and we would be foolish not to take advantage of its opportunities there,” Patronis said, pointing to the need to prepare for the rise of digital currencies.
However, some critics have raised concerns about the state’s investment plans in Bitcoin, warning about the cryptocurrency’s volatility.
Charles Bobrinskoy of Ariel Investments argued that Bitcoin is a “momentum-driven bubble”, adding that it has an “unstable price” and has no real value.
Meanwhile, state officials defended the move, believing that Bitcoin is a “good long-term investment” and a better option for hedging against conventional financial risks.
Featured image from Business Standard, chart from TradingView
