Florida CFO Proposes Bitcoin Investment for State Retirement Funds to Diversify Assets

On October 30, COINOTAG reported that Florida’s Chief Financial Officer, Jimmy Patronis, is advocating for the state-managed retirement fund to consider allocating capital to Bitcoin. This move positions Florida to potentially become the third state to integrate digital assets within its retirement strategy. Earlier this year, the Wisconsin Investment Committee allocated $164 million to prominent spot Bitcoin ETFs managed by Grayscale and BlackRock, which represents approximately 0.1% of its overall assets. Similarly, the Michigan Retirement System revealed a holding of 110,000 shares in the ARK 21Shares ETF, equating to 0.003% of total managed assets. In correspondence with the Florida State Board of Administration, Patronis emphasized that Bitcoin, often termed ‘digital gold’, offers diversification benefits and serves as a hedge against the inherent volatility of traditional investments. The Florida’s State Board of Administration oversees over 30 funds, including the Florida Retirement System Trust Fund, which has the capacity to invest about $998 million in high-growth prospects between 2022 and 2023. Patronis underscored the necessity of balancing fiduciary responsibility with the pursuit of robust returns for retirement benefactors.