Arizona Senate Considers Bitcoin ETFs for Retirement Funds

Last Updated on March 7, 2024

Victor Headshot
Written by

Key Takeaways:

  • A bill is under review to include Bitcoin ETFs in the Arizona State Retirement System (ASRS) and Public Safety Personnel Retirement System (PSPRS) portfolios.
  • The bill passed the Senate on February 22 with a 16-13 vote and is currently undergoing a second evaluation in the House.
  • It encourages ASRS and PSPRS to explore Bitcoin ETFs for diversification and risk mitigation, requiring consultation with providers of SEC-approved ETFs.
  • A detailed report on the feasibility, risks, benefits, and safety measures of Bitcoin ETF inclusion must be submitted to state leadership.
  • The bill is highlighted as a method to reduce portfolio risk and enhance stability, with comparisons to traditional safe-haven assets like gold.
  • All this talk reflects a growing acceptance of Bitcoin within traditional investment strategies for retirement and pension funds.

The Arizona State Senate is currently deliberating a proposal aimed at integrating Bitcoin exchange-traded funds (ETFs) into two of the state’s pension plans. This initiative passed the Senate’s rigorous Third Reading by a close vote of 16-13 on February 22, as shown by legislative records. It’s now under further scrutiny in the House for a second evaluation.

This legislative push would enable the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to potentially diversify their investment portfolios by incorporating Bitcoin ETFs, according to documentation from the state. Initially presented to the Senate on January 30, 2024, the bill mandates these retirement systems to stay abreast of the evolving Bitcoin ETF market.

It requires careful consideration of the effects of including Bitcoin ETFs in their investment strategies, including consultations with providers of SEC-approved Bitcoin ETFs.

Arizona state senate fact sheet
Arizona state Senate fact sheet for Bitcoin ETF retirement bill. Source: Arizona Senate

The proposal outlines the necessity for a detailed report to be submitted to key state officials, including Arizona’s State Treasurer and the heads of both legislative chambers. This report would assess the viability, associated risks, and anticipated advantages of adopting Bitcoin ETFs into the pension funds, along with outlining the precautionary measures to be implemented.

Moreover, the proposal is open to the inclusion of other digital asset ETFs, suggesting a broader openness to cryptocurrency investments within the state’s retirement portfolios.

Dennis Porter, CEO of Satoshi Action Fund, lauded the proposal, viewing it as a prudent step towards diversifying investment portfolios and mitigating risks. He emphasized the potential for even a minimal allocation to Bitcoin ETFs to significantly safeguard asset portfolios against volatility.

Through a recent social media post, Porter likened Bitcoin’s value and stability to traditional “safe-haven” assets such as gold, highlighting the strategic importance of considering Bitcoin ETFs for Arizona’s pension funds.

Furthermore, John Palmer, president of the Chicago Board Options Exchange, earlier this year expressed optimism that approval of a spot Bitcoin ETF would facilitate pension and retirement funds’ investment in Bitcoin, leveraging the ETF structure.

About The Author

Victor Headshot
Written by

News Reporter

Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.

With a keen eye for emerging trends and a talent for engaging storytelling, Victor’s articles offer a fresh perspective on the ever-evolving digital currency landscape.

Check Victor out on: