The Arizona State Senate has advanced a resolution aimed at evaluating the potential for incorporating Bitcoin Exchange-Traded Funds (ETFs) into the state’s retirement funds. This proposal encourages the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to assess the viability of adding Bitcoin ETFs to their investment portfolios. The resolution passed with a 16-13 vote, indicating a divided stance along party lines, with all Democrats opposing the measure.
Introduced shortly after the U.S. Securities and Exchange Commission approved the trading of Bitcoin ETFs, the resolution highlights Arizona’s interest in digital asset investments. Spearheaded by Republican State Senator Wendy Rogers, known for her efforts to legalize Bitcoin as tender within the state, the resolution could pave the way for the ASRS and PSPRS to explore new investment vehicles. Rogers’ previous bill in 2022 aimed at making Bitcoin legal tender did not progress to committee markup.
Evaluating Bitcoin ETFs for Retirement Portfolios
The concurrent resolution, not requiring Arizona Governor Katie Hobbs’ signature, mandates the ASRS and PSPRS to compile a report on the feasibility, risks, and benefits of investing in digital asset ETFs. This report is expected to include a list of options and recommendations for how the state might safely invest in this asset class.
This move by the Arizona State Senate follows examples from other states and municipalities that have started to allocate funds to cryptocurrency investments. For instance, a pension fund for firefighters in Houston, Texas, announced a $25 million investment in Bitcoin and Ether in 2021, and a Virginia-based retirement system began investing in crypto-related ventures as early as 2019.
The resolution is now before the state House Ways and Means Committee for further consideration, marking a step toward potentially broadening the investment strategies of Arizona’s state retirement systems with Bitcoin ETFs.
Source: https://www.cryptopolitan.com/arizona-senate-pushes-bitcoin-etf-inclusion/