The Arizona State Senate is currently examining a proposal to promote the inclusion of Bitcoin exchange-traded funds (ETFs) in two of the state’s retirement portfolios. According to records, the resolution has passed the Senate’s Third Reading with a vote of 16-13 on Feb. 22 and is now being reviewed by the House for the second time. If approved, the proposal would urge the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to consider incorporating exposure to Bitcoin ETFs in their respective portfolios, as stated by state records. The Bitcoin retirement resolutions were initially introduced and reviewed by the Senate on Jan. 30, 2024.
The resolutions require the ASRS and PSPRS to closely observe the developments in the Bitcoin ETF industry and evaluate the “implications” of including Bitcoin ETFs in their retirement portfolios. This process would involve consulting with firms that offer Securities and Exchange Commission-approved Bitcoin ETFs. Subsequently, a detailed report outlining the feasibility, risks, potential benefits, and safety precautions of adding Bitcoin ETF exposure would need to be submitted to Arizona’s State Treasurer, President of the Senate, and Speaker of the House of Representatives. The document also states that other digital asset ETFs would be taken into consideration.
Dennis Porter, CEO of the Satoshi Action Fund, believes that this move is a strategic effort to enhance portfolio diversification and reduce investment risk. He suggests that even a small amount of Bitcoin ETF exposure could significantly de-risk an asset portfolio. Porter explains that by considering Bitcoin ETFs, Arizona aims to leverage the inherent value and potential stability offered by Bitcoin, similar to traditional safe-haven investments like gold.
Earlier this year, John Palmer, the president of the Chicago Board Options Exchange, predicted that the approval of a spot Bitcoin ETF would open the door for pension and retirement investment account funds to invest in Bitcoin through ETFs.
In related news, a recent analysis of Australian tax data revealed a growing interest in holding cryptocurrencies for retirement purposes. Additionally, a magazine article provides insights into the best and worst countries for crypto taxes, along with some tips for handling crypto taxes.