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Arizona State Senate Considers Including Bitcoin ETFs in Retirement Plans
A bill currently under consideration in the Arizona state senate aims to expand the state’s portfolio of retirement plans for government workers to include Bitcoin ETFs. This move is outlined in Senate Concurrent Resolution 1016, introduced by state Sens. Jake Hoffman and Warren Petersen, along with Rep. Joseph Chaplik.
The proposed resolution, while non-binding, underscores the surging interest in Bitcoin and Bitcoin ETFs, especially after the recent approval of 11 spot Bitcoin ETFs in January. With Bitcoin’s market cap exceeding $1.3 trillion and the global assets under management for firms exploring Bitcoin ETFs totaling over $16 trillion, the resolution aims to capitalize on this growing trend.
Comparing Bitcoin to other high-value assets like gold and silver, the resolution argues that the state’s pension plans should adapt to the evolving financial landscape. It points out that the federal government already holds a significant amount of Bitcoin, and Arizona’s state retirement systems need to prioritize the best interests of their members.
Consideration of Various Digital Assets
Although the focus of the legislation is on Bitcoin, there is room for exploring other digital asset-based ETFs, such as Ethereum ETFs currently under review by the U.S. Securities and Exchange Commission. The resolution urges collaboration between the state retirement systems, the Public Safety Personnel Retirement System, and the State Treasurer’s office to assess the risks and benefits associated with investing in Bitcoin and digital asset ETFs.
Emphasizing the importance of evaluating the feasibility, risks, and potential benefits of digital asset investments, the resolution calls for strategic recommendations to be presented to key state officials for further consideration.
While the authors of the resolution did not respond to requests for comments, the potential advantages of incorporating Bitcoin exposure into pension plans have been championed by prominent figures like entrepreneur Anthony Pompliano. Pompliano previously advocated for public pension funds to allocate a portion of their assets to Bitcoin, highlighting the potential impact this could have on fund sustainability.
Reflecting on the benefits of such a strategy, Pompliano pointed out that if state pension funds had adopted a 1% exposure to Bitcoin back in 2018, more pension funds would be fully funded today. He emphasized the need to look ahead and embrace innovative investment opportunities, like Bitcoin, to enhance the financial health of pension funds.
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