In a significant development showcasing the growing adoption of cryptocurrencies within traditional financial systems, the Jersey City pension fund is in the process of allocating an undisclosed percentage of its assets to invest in Bitcoin ETFs.
Jersey City To Join Wisconsin In Bitcoin ETFs Investment
According to Jersey Mayor Steven Fulop, the city’s pension fund is currently updating its paperwork with the US Securities and Exchange Commission (SEC) to allow allocations to Bitcoin ETFs, mirroring a similar move by the Wisconsin Pension Fund earlier this year.
However, the percentage of the fund’s allocation to Bitcoin ETFs remains undisclosed, pending final approval from the SEC, but is expected to be completed by the end of the summer.
The issuer selected by the city’s fund to manage its investment was also not disclosed in Fulop’s announcement on Thursday. The Jersey City mayor also took to social media to comment on BTC and the crypto industry stating:
Not my normal subject matter in a post but I’ll share anyway – the question on whether Crypto/Bitcoin is here to stay is largely over + crypto/Bitcoin won.
Mayor Fulop, a self-described long-time believer in crypto, noted that beyond just cryptocurrencies, he believesblockchain technology is “amongst the most important new technology innovations since the internet.”
As our sister site Bitcoinist reported back in May, the Wisconsin State Investment Board allocated about $98.6 million, or 2% of its fund, to one of the most successful Bitcoin ETFs and asset managers, BlackRock’s iShares Bitcoin Trust.
Crypto ETF Frenzy Intensifies
Following the recent approval of Ethereum ETFs by the SEC on Monday, asset managers are reportedly quickly ramping up efforts to launch a range of new crypto-based investment products.
According to a Bloomberg report, industry giants like ProShares have already filed paperwork for six funds that would provide long and short exposure to both Bitcoin and Ethereum. Meanwhile, issuers like Hashdex are looking to package the two largest cryptocurrencies into a single investment vehicle.
The rush of new product filings comes on the heels of the successful debuts of the first Bitcoin and Ethereum ETFs in the US in January and Tuesday, respectively, as they have collectively attracted more than $17.5 billion in net inflows so far in 2024, dwarfing the flows of some major tech-focused ETFs. Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence, said:
The successful launches of the first crypto ETFs this year took many analysts by surprise, as the funds attracted significantly more assets than expected. This is clearly emboldening issuers to get even more creative in their efforts to capitalize on surging investor demand.
At the time of writing, the largest cryptocurrency on the market has tumbled over the past few hours and retreated to the $64,990 level, representing a 2.3% drop compared to Wednesday’s trading price.
Featured image from DALL-E, chart from TradingView.com