Florida’s chief financial officer, Jimmy Patronis, is advocating for the state’s retirement funds agency to consider investing in Bitcoin. This move aligns with a growing trend among American states to include cryptocurrencies in their portfolios.
In a letter to the Florida State Board of Administration’s executive director, Chris Spencer, on October 29, Patronis stated that Bitcoin is often referred to as “digital gold” and could provide portfolio diversification and a secure hedge against the volatility of other major asset classes.
The letter urges the SBA to conduct a report on the feasibility, risk, and potential benefits of allocating a portion of the state retirement system’s funds to digital asset classes. Patronis emphasizes the importance of completing this report before the next legislative session, scheduled for March 4, 2025.
The SBA manages more than 30 funds, including the Florida Retirement System Trust Fund, which currently holds approximately $205 billion in assets under management as of September 30.
Patronis suggests that the SBA could establish a “Digital Currency Investment Pilot Program” as part of the Florida Growth Fund. This fund has the authority to utilize up to 1.5% of the Florida Retirement System Trust Fund and has previously invested nearly $998 million in high-growth investments between 2022 and 2023.
Patronis emphasizes the need to prioritize the bottom line and ensure the best return on investment for Floridians, especially when managing state pensions for firefighters, teachers, and police officers. He believes that investing in a cryptocurrency like Bitcoin holds significant potential in this regard.
Furthermore, Patronis highlights that this move aligns with Florida Governor Ron DeSantis’s recent efforts to oppose central bank digital currencies (CBDCs), as cryptocurrencies represent the opposite of centralized currencies.
If Florida proceeds with investing in cryptocurrencies, it will join states such as Wisconsin and Michigan, which have already added crypto assets to their respective state retirement funds. In May, the State of Wisconsin Investment Board disclosed a $164 million investment in spot Bitcoin exchange-traded funds (ETFs) offered by Grayscale and BlackRock, constituting approximately 0.1% of its total assets under management.
Similarly, in July, the State of Michigan Retirement System revealed its investments in Bitcoin through 110,000 shares in ARK 21Shares’ ETF, amounting to 0.003% of its assets under management.