Arizona Senate advances effort to add crypto to state retirement funds
The concurrent resolution seeks to “encourage” pension fund managers to consider crypto in their allocations
The Arizona state Senate has advanced a resolution that would have lawmakers and state retirement fund managers look into allocating a portion of portfolios to bitcoin ETFs.
The concurrent resolution, introduced less than a month after the US Securities and Exchange Commission allowed bitcoin ETFs to start trading, seeks to “encourage” the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to monitor these new investment vehicles and consider adding exposure, according to a fact sheet.
The state Senate passed the resolution in a 16-13 vote late last month. Senators followed party lines, with all Democrats voting against the measure. The text is now before the state House Ways and Means Committee.
Republican state Senator Wendy Rogers, who in 2022 spearheaded an effort to make bitcoin legal tender in the state, voted in favor of the resolution. Rogers’ 2022 bill never made it to committee markup.
Read more: Arizona considers making bitcoin legal tender
As a concurrent resolution, the measure can proceed with support from the House and Senate, bypassing a signature from Arizona Governor Katie Hobbs. If passed it will not carry the same force as a law.
If passed, the resolution will ask the ASRS and PSPRS to create a “report on the feasibility, risk and potential benefits of directing a portion of state retirement system monies into digital asset ETFs , including a list of options and recommendations for how the state might safely invest in the digital asset class.”
It’s not the first time states have considered adding crypto exposure to pensions and retirement plans, but the newly-approved bitcoin spot ETFs provide a more accessible onramp.
A pension fund for firefighters in Houston, TX in 2021 announced a $25 million investment in bitcoin and ether, a purchase plan managers said was carried out via investment management firm NYDIG. A Fairfax County Police Officers Retirement System in Virginia started allocating funds to crypto-related investments in 2019, including a $50 million investment in Morgan Creek Capital’s blockchain fund.
Following bitcoin ETFs? Stay up to date with our bitcoin ETF tracker .
A CFA Institute survey in April 2022 found that 94% of state and government pension plan sponsors reported investing in crypto, although the nature of the investment vehicle was not specified.
The US Department of Labor has warned retirement plan fiduciaries “to exercise extreme care” before considering adding a cryptocurrency option to a 401(k) plan’s investment menu.
Don’t miss the next big story – join our free daily newsletter .
- BTC
- ETFs
- regulation
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The Capital Trends Behind the AI Computing Power Rebound: JPMorgan Fund Flows Reveal Retail Buy-In "Shrinking," Pouring Into Nvidia, SanDisk and Other Computing Power Core Companies
What has been revealed is not a "complete withdrawal of retail investors from AI," but rather a significant slowdown in overall market entry pace under macroeconomic pressure, with stock selections becoming more concentrated. In response to the Federal Reserve's unanimous decision to raise interest rates by 25 basis points, increasing the policy rate to 3.75%–4.00%, JPMorgan's assessment is: if this is simply a withdrawal of last year's "insurance-style rate cuts" during a shallow rate hike cycle—and if corporate earnings remain strong and the Middle East situation does not further spiral out of control—the stock market is still capable of absorbing rising interest rates.
Vote Result 7-2! Bank of Japan Raises Interest Rates at Fastest Pace Since 1990, Does Not Signal a Clearly More Hawkish Stance
The Bank of Japan has raised interest rates to 1.25%, marking the highest level since 1995 and the sixth increase since exiting the negative interest rate policy in March 2024. Out of the nine committee members, Asada and Sato voted against the hike, citing the current economic situation, reflecting ongoing internal disagreements over further tightening. In its statement, the Bank of Japan indicated it will continue to raise rates and adjust the degree of monetary easing, but the forward guidance language showed limited changes from the July statement, without sending notably more hawkish signals.
Crypto prices
More
