In an initiative to adopt modern investment strategies, the Arizona State Senate has passed a resolution advocating for the consideration of Bitcoin exchange-traded funds (ETFs) by retirement fund managers. Following the US Securities and Exchange Commission’s approval of Bitcoin ETF trading, the proposal presents an opportunity for the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to explore this new investment avenue.
Senate Endorses Cryptocurrency Investment for Pensions
The resolution, having obtained Senate approval with a favorable 16-13 vote, is presently slated for discussion in the State House Ways and Means Committee. The support for the resolution has been divided along party lines, with all Democrats voting against it, signifying a debate on the role of cryptocurrencies in state pension funds.
Republican State Senator Wendy Rogers, a vocal proponent for cryptocurrency acceptance and previously involved in endeavors to establish Bitcoin as legal tender in Arizona, supported the resolution. She remains optimistic despite her prior bill not advancing past committee stages.
Anticipating the Impact on State Pension Funds
If the proposal gains approval from the House and Senate and is enacted into law, it would mandate ASRS and PSPRS to draft a detailed report. The report would evaluate the viability and potential benefits of incorporating Bitcoin ETFs into pension portfolios, while also weighing associated risks.
This legislative move comes amidst growing interest in integrating cryptocurrencies into retirement plans. Recent developments have seen pension funds, such as the Houston firefighters’ retirement fund, investing in Bitcoin and Ethereum, and the Fairfax County Police Officers Retirement System in Virginia allocating substantial funds to cryptocurrency ventures as early as 2019.