Jersey City to invest portion of pension fund in Bitcoin ETFs

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Jersey City Mayor Steven Fulop has revealed plans to invest a portion of the town’s pension fund in Bitcoin exchange-traded funds (ETFs), marking a big step in the direction of integrating cryptocurrencies into municipal monetary methods.

Fulop introduced on July 25 that Jersey City, the second largest metropolis in New Jersey, is updating its documentation with the US Securities and Alternate Fee (SEC) to embrace Bitcoin ETFs in its pension fund investments. This transfer follows an analogous choice by the Wisconsin Pension Fund, which allotted 2% of its $156 billion in property to Bitcoin ETFs in the second quarter.

The mayor, who has served since 2013, emphasised his long-standing perception in cryptocurrency and blockchain know-how. Fulop said, “The query on whether or not Crypto/Bitcoin is right here to keep is basically over and crypto/Bitcoin received.” He additional highlighted the potential of blockchain know-how, describing it as “among the many most necessary new know-how improvements for the reason that web.”

Bitcoin ETFs have proven exceptional efficiency since their launch earlier this yr, with BlackRock’s IBIT not too long ago surpassing Nasdaq’s QQQ in phrases of year-to-date inflows. The SEC’s approval of spot Bitcoin ETFs on US exchanges has paved the way in which for public pension funds to think about such investments, though Jersey City and Wisconsin stay among the many few public entities exploring this avenue.

Whereas main monetary establishments like Wells Fargo and JPMorgan Chase have proven restricted engagement with Bitcoin ETFs, investing lower than $1 million mixed, Fulop’s choice indicators rising acceptance of digital property in institutional portfolios. The implementation of Bitcoin ETFs in Jersey City’s pension fund is predicted to be accomplished by the tip of the summer season.

This transfer in the direction of crypto funding in public funds displays a broader development of institutional acceptance. As extra cities and states think about diversifying their portfolios with digital property, it might doubtlessly affect the broader adoption of cryptocurrencies in conventional finance. Nevertheless, it’s price noting that Fulop didn’t point out any plans to invest in different cryptocurrencies or associated property, similar to Ethereum ETFs, which started buying and selling earlier this week.

Jersey City plans to invest half of its pension fund in Bitcoin ETFs, signaling rising institutional acceptance of cryptocurrencies in municipal monetary methods.

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