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Arizona Senate proposes adding Bitcoin exposure to state pension funds

Arizona Senate proposes adding Bitcoin exposure to state pension funds Assad Jafri · 13 hours ago · 2 min read

Arizona is considering the inclusion of Bitcoin exposure in two of its state retirement portfolios, which collectively hold $70 billion in AUM.

2 min read

Updated: Mar. 6, 2024 at 11:39 pm UTC

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

The Arizona State Senate passed a resolution to consider digital assets — specifically Bitcoin ↗ exposure — as potential investments for the state’s retirement systems.

The 56th legislature — Senate Concurrent Resolution 1016 ↗ (SCR 1016) — proposes that the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) examine the viability of including digital asset ETFs, like Bitcoin ETFs, in their portfolios.

The ASRS and the PSPRS — established in 1953 and 1968, respectively — serve as the backbone for retirement benefits for Arizona’s public employees, including those in hazardous duties such as firefighters and police officers. These systems ensure that public servants have a secure financial foundation upon retirement.

Based on public disclosures, the two pension funds collectively hold approximately $70.2 billion in assets under management as of 2024.

SCR 1016

The essence of SCR 1016 is a gentle push for these retirement systems to carefully assess the impact of integrating digital asset ETFs into their investment strategies.

The resolution advises the funds to stay informed on developments in the field of digital assets, including Bitcoin ETFs, and to consult with firms that have received approval to offer such financial products.

Furthermore, it calls for a comprehensive analysis of the feasibility, benefits, and risks associated with directing state retirement funds into digital assets.

This report, which is to be prepared for the legislative and executive branches before the commencement of the next legislative session, aims to lay down a roadmap for potentially safe investment practices in the digital asset space.

ETF Impact

The recent launch of spot Bitcoin ETFs and their record-setting performance in recent weeks has had a noticeable impact on investor sentiments, and many are beginning to consider Bitcoin as a viable option for their investment portfolios.

The Newborn Nine amassed over $11 billion in assets under management (AUM) in their first month of trading and have continued their stellar performance to culminate in a total AUM of roughly $22 billion as of March 5 — with IBIT ↗ accounting for $10 billion ↗.

Including GBTC ↗, the total AUM stands at a notable $47 billion as of press time, according to CoinGlass data ↗.

The rapid accumulation indicates a strong demand for regulated, accessible investment products that track the price of Bitcoin directly​. Meanwhile, interest in the flagship crypto is expected to continue ramping up as it approaches the fourth halving of mining rewards around mid-April.

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Kaylie Pferten
Kaylie Pferten
A pilot of submersible crafts in a former life, now married to my husband David and writing about investment advice.

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