Florida Official Proposes Including Bitcoin in State Pension Funds

Florida’s Chief Financial Officer Jimmy Patronis has proposed that the state’s retirement fund agency explore Bitcoin (BTC) investments, joining a wave of states considering crypto assets in their portfolios.

In a recent letter to the Florida State Board of Administration (SBA), the CFO pointed to BTC as a valuable addition to the state’s asset diversification strategy, describing it as “digital gold” with the potential to offset volatility in other key asset classes.

For context, the SBA oversees over 30 funds, including the Florida Retirement System Trust Fund, which manages assets totaling around $205 billion as of September.

Patronis’ Suggestion

Patronis suggested establishing a “Digital Currency Investment Pilot Program” under the Florida Growth Fund. This fund has used up to 1.5% of the Retirement System Trust Fund in the past and invested approximately $998 million in high-growth assets between 2022 and 2023.

He also called for a report from the SBA by March 4, 2025, on the feasibility, risks, and potential advantages of allocating state retirement funds to digital assets ahead of Florida’s upcoming legislative session.

The CFO highlighted Bitcoin’s potential as an appealing investment choice, adding that crypto investments could support Florida Governor Ron DeSantis’ opposition to central bank digital currencies (CBDCs). He described CBDCs as the “antithesis” of decentralized digital assets, emphasizing the contrast between government-controlled currencies and BTC’s decentralized nature.

Pension Funds Begin Allocating Millions to BTC

In recent months, several U.S. state investment boards and pension funds have shown increasing interest in Bitcoin by investing through exchange-traded funds (ETFs). 

In May, the State of Wisconsin Investment Board (SWIB) committed $164 million to spot Bitcoin ETFs from Grayscale and BlackRock, representing about 0.1% of its total assets. Shortly after, in July, Michigan’s state retirement fund disclosed it held 110,000 shares in ARK 21Shares’ Bitcoin ETF, which equates to roughly 0.003% of its assets under management.

Following the trend, Jersey City’s Employees Retirement System (ERS) has decided to allocate a portion of its portfolio to BTC through ETFs. If Florida proceeds with its plan, it will follow a similar path by adding crypto investments to its public retirement portfolios.