The city Mayor plans to include Bitcoin ETFs in municipal pension fund investments.
Key Takeaways
- Jersey City's pension fund plans to invest in Bitcoin ETFs following SEC approval.
- Mayor Steven Fulop has been a proponent of crypto and blockchain as major technological innovations.
Jersey City Mayor Steven Fulop has revealed plans to invest a portion of the city’s pension fund in Bitcoin exchange-traded funds (ETFs), marking a significant step towards integrating cryptocurrencies into municipal financial strategies.
Fulop announced on July 25 that Jersey City, the second largest city in New Jersey, is updating its documentation with the US Securities and Exchange Commission (SEC) to include Bitcoin ETFs in its pension fund investments. This move follows a similar decision by the Wisconsin Pension Fund, which allocated 2% of its $156 billion in assets to Bitcoin ETFs in the second quarter.
The mayor, who has served since 2013, emphasized his long-standing belief in cryptocurrency and blockchain technology. Fulop stated, “The question on whether Crypto/Bitcoin is here to stay is largely over and crypto/Bitcoin won.” He further highlighted the potential of blockchain technology, describing it as “among the most important new technology innovations since the internet.”
Bitcoin ETFs have shown remarkable performance since their launch earlier this year, with BlackRock’s IBIT recently surpassing Nasdaq’s QQQ in terms of year-to-date inflows. The SEC’s approval of spot Bitcoin ETFs on US exchanges has paved the way for public pension funds to consider such investments, although Jersey City and Wisconsin remain among the few public entities exploring this avenue.
While major financial institutions like Wells Fargo and JPMorgan Chase have shown limited engagement with Bitcoin ETFs, investing less than $1 million combined, Fulop’s decision signals growing acceptance of digital assets in institutional portfolios. The implementation of Bitcoin ETFs in Jersey City’s pension fund is expected to be completed by the end of the summer.
This move towards crypto investment in public funds reflects a broader trend of institutional acceptance. As more cities and states consider diversifying their portfolios with digital assets, it could potentially influence the wider adoption of cryptocurrencies in traditional finance. However, it’s worth noting that Fulop did not mention any plans to invest in other cryptocurrencies or related assets, such as Ethereum ETFs, which began trading earlier this week.
Jersey City plans to invest part of its pension fund in Bitcoin ETFs, signaling growing institutional acceptance of cryptocurrencies in municipal financial strategies.