Key Insights
- Jersey City’s pension plan updates SEC paperwork to allocate funds to Bitcoin ETFs.
- Mayor Fulop predicts increasing crypto investments by state and local pension funds.
- Similar moves by Wisconsin’s pension fund mark a trend toward broader crypto adoption.
Jersey City Pension Fund to Invest in Bitcoin ETFs Announces Mayor’s Fulop
Jersey City’s municipal pension plan is set to invest in Bitcoin through exchange-traded funds (ETFs). Mayor Steven Fulop announced this on Thursday via social media. While the investment amount is expected to be small, it represents another step towards broader cryptocurrency adoption.
The Employees’ Retirement System of Jersey City is currently updating paperwork with the U.S. Securities and Exchange Commission (SEC). This update is necessary to allocate a portion of the fund to bitcoin ETFs. The investment is expected to be finalized by the end of the summer.
Fulop did not disclose the exact percentage of the pension fund’s assets that will be allocated to bitcoin ETFs. However, he mentioned it would be similar to the 2% allocation made by Wisconsin’s state pension fund earlier this year.
Mayor Fulop, a Democratic candidate for New Jersey’s 2025 gubernatorial election, has a long-standing belief in cryptocurrency and blockchain technology. He described blockchain as one of the most significant technological innovations since the internet.
Interest from Public Pension Funds
Interest in Bitcoin from public pension funds is increasing. Wisconsin’s public pension plan, the State of Wisconsin Investment Board, manages approximately $156 billion in assets. Earlier this year, it made a $160 million investment in spot bitcoin ETFs. Smaller pension funds, like the Houston Firefighters’ Relief and Retirement Fund, have also been investing in crypto for several years.
Additionally, the pensions of Fairfax County, Virginia, have invested in crypto through VanEck’s New Finance Income Fund. This fund became a creditor to the crypto firm Genesis during its bankruptcy filing last year.
Internationally, Japan’s $1.4 trillion Government Pension Investment Fund, the largest pension plan globally, requested information on bitcoin investments earlier this year.
Fulop expressed confidence that pension fund allocations to cryptocurrency would become more common in the future. He believes that blockchain technology will play a significant role in the financial sector.
The announcement comes as Fulop attempts to secure support for his gubernatorial bid. Signaling support for crypto has become a way to attract campaign donations from pro-crypto companies and executives.
Conclusion
The move by Jersey City’s municipal pension plan to invest in Bitcoin ETFs highlights the growing acceptance and adoption of cryptocurrency. As more public pension funds consider similar investments, the influence of blockchain technology and crypto is expected to expand further.
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