Mayor Steven Fulop has announced plans to introduce Bitcoin exchange-traded funds (ETFs) into the city’s pension funds. This move marks a significant step towards broader cryptocurrency adoption within traditional financial institutions.
Fulop, a vocal supporter of cryptocurrency, believes that Bitcoin represents a promising investment opportunity. By allocating a portion of the pension fund to Bitcoin ETFs, the city aims to diversify its portfolio and potentially generate higher returns.
While the exact percentage of the pension fund that will be invested in Bitcoin ETFs has not been disclosed, the mayor indicated that it would be similar to the 2% allocation made by Wisconsin’s state pension fund earlier this year.
The Employees Retirement System of Jersey City is currently in the process of updating paperwork with the Securities and Exchange Commission (SEC) to facilitate the Bitcoin ETF investment. The city anticipates completing the process by the end of the summer.
This development comes as a growing number of institutional investors are showing interest in Bitcoin as a hedge against inflation and a potential long-term store of value. If successful, Jersey City’s investment could pave the way for other municipalities to follow suit, further legitimizing cryptocurrency within the traditional finance sector.
July 2024, Cryptoniteuae