Florida’s Chief Financial Officer and Fire Marshal, Jimmy Patronis, has recommended that state retirement fund managers examine Bitcoin as a potential investment for the state’s portfolio, reflecting a trend among U.S. states exploring Bitcoin for diversification.
In an October 29th letter addressed to Chris Spencer, Executive Director of the Florida State Board of Administration (SBA), Patronis described Bitcoin’s potential as a stabilizing asset, often referred to as “digital gold.”
He requested a report on the feasibility, risks, and potential benefits of including digital assets in Florida’s retirement fund portfolio, with findings due by March 4th, 2025.
There’s no telling what the future of #cryptocurrency will be, but FL must stay ahead of the curve on getting the best returns for Floridians. Today, I sent a letter to @FloridaSBA requesting a report on digital currencies. #BTC #Bitcoin
➡️ Read more: https://t.co/4JBL6WBtq1
— Jimmy Patronis (@JimmyPatronis) October 29, 2024
Currently, the SBA manages over 30 funds, including the $205 billion Florida Retirement System Trust Fund as of September 30th.
Under the Florida Growth Fund, the SBA has authority to allocate up to 1.5% of the trust fund to high-growth investments and has invested around $998 million in recent years.
Patronis proposed using this vehicle to pilot a “Digital Currency Investment Program” to explore Bitcoin's potential within the growth-focused portfolio.
In his letter, Patronis emphasized that the primary duty in managing state pensions is to deliver returns for public sector retirees, adding that Bitcoin could potentially strengthen investment returns.
He further noted that a state investment in Bitcoin aligns with Governor Ron DeSantis’ position against central bank digital currencies (CBDCs), highlighting Bitcoin as a decentralized alternative to centralized currencies.
If adopted, Florida would join states like Wisconsin and Michigan in including Bitcoin in public retirement funds.
Wisconsin’s investment board disclosed a $164 million investment in Bitcoin exchange-traded funds (ETFs), while Michigan reported a smaller allocation to a Bitcoin ETF from ARK 21Shares.