Jersey City's pension fund is planning to invest in bitcoin exchange-traded funds (ETFs) in the next few weeks, following the process that began earlier this year. The move comes after Donald Trump's election win, which is expected to drive institutional adoption of cryptocurrencies. Mayor Steven Fulop expressed regret that the fund hadn't bought bitcoin at a lower price but believes it will still be higher in the future. The pension fund, with around $225 million, is considering investments in bitcoin ETFs offered by BlackRock and Fidelity. The officials said the fund might allocate around 2% to bitcoin ETFs by reducing its exposure to other assets. Fulop also commented on the similarity between bitcoin and gold as a store of value, noting the advantage of bitcoin's instantaneous transferability. The mayor believes in the importance of cryptocurrency and blockchain and considers them inevitable and long-term asset classes. While the pension fund has only looked at bitcoin, Fulop believes Ethereum is here to stay but emphasizes the need for caution due to fiduciary responsibilities. Jersey City has not yet considered accepting bitcoin as an official payment, citing the need for stability in price and the volatile nature of the cryptocurrency market.
- Content Editor ( blockworks.co )
- 2024-11-14
The Jersey City pension fund’s path to BTC exposure