Florida Chief Financial Officer (CFO) Jimmy Patronis has voiced strong support for including bitcoin (BTC) in the state’s investment portfolio.
If implemented by the State Board of Administration (SBA), Florida will join a growing number of American states like Wisconsin and Michigan, which have added crypto assets to their portfolios.
In a letter sent to the SBA executive director Chris Spencer, Patronis called on the SBA to provide a report regarding the feasibility, risks, and possible advantages of allocating a portion of state pension funds into digital asset categories and requested that the report be ready before the upcoming legislative session, which is set for March 4, 2025.
“Bitcoin is often called ‘digital gold,’ and it could help diversify the state’s portfolio and provide a secure hedge against the volatility of other major asset classes,” Patronis said.
A Framework For Florida’s Growth Fund
The CFO proposed that the SBA could establish a “Digital Currency Investment Pilot Initiative” within the framework of the Florida Growth Fund.
Florida’s SBA oversees more than 30 funds, including the Florida Retirement System Trust Fund, which held approximately $205 billion in assets under management as of September 30.
According to a January report, the fund used up to 1.5% of the Florida Retirement System Trust Fund and invested approximately $998 million in high-growth assets between 2022 and 2023.
“When managing state pensions for firefighters, teachers, and police officers, it’s also essential to prioritize the bottom line and ensure the best return on investment for Floridians. This is where the potential of investing in a cryptocurrency, like Bitcoin, becomes particularly compelling,” he added.
The CFO further noted that this step would align with Florida Governor Ron DeSantis’s recent push to block central bank digital currencies (CBDCs), emphasizing that crypto is the “antithesis” of centralized currency.
US States Investing in Crypto Assets
Other US states have recently invested in digital assets. For instance, in May, the State of Wisconsin Investment Board (SWIB) revealed an investment of $164 million in spot Bitcoin exchange-traded funds (ETFs) from Grayscale and BlackRock, representing approximately 0.1% of its total assets under management.
Similarly, in July, the State of Michigan Retirement System disclosed its Bitcoin investments, holding 110,000 shares in ARK 21Shares’ ETF, constituting 0.003% of its assets under management.
