Key Takeaways
- Arizona Senate advances a resolution to explore Bitcoin ETFs in state retirement funds.
- The resolution encourages the ASRS and PSPRS to assess the risks and benefits of Bitcoin investments.
- Other states have also begun integrating cryptocurrency into pension and retirement plans.
Exploring Crypto in Retirement Portfolios
The Arizona state Senate has recently passed a resolution aimed at exploring the inclusion of Bitcoin ETFs in state retirement funds. This move comes shortly after the US Securities and Exchange Commission approved the trading of Bitcoin ETFs. The resolution encourages the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to consider the potential benefits and risks of integrating these new investment vehicles into their portfolios.
Bipartisan Vote and Future Steps
The resolution saw a split vote in the Senate, with all Democrats opposing and Republicans supporting the initiative. The proposal, led by Republican state Senator Wendy Rogers, now moves to the state House Ways and Means Committee for further consideration. If approved by both the House and Senate, the resolution will request a comprehensive report on the feasibility of investing a portion of state retirement funds in digital asset ETFs.
National Trend and Precedents
Arizona’s exploration of crypto in retirement funds is part of a growing national trend. Other states, such as Texas and Virginia, have already made moves to include cryptocurrency in pension and retirement plans. A recent survey by the CFA Institute found that a significant majority of state and government pension plan sponsors have invested in crypto, albeit through various investment vehicles.
