The Jersey City pension fund plans to allocate a portion of its assets to Bitcoin ETFs, following Wisconsin's lead. This move signals the growing acceptance of cryptocurrencies within traditional financial systems.
SEC Approval Process
Mayor Steven Fulop announced that the city’s pension fund is updating its paperwork with the US Securities and Exchange Commission (SEC) to permit these allocations. The exact percentage of the fund’s allocation to Bitcoin ETFs remains undisclosed, pending SEC approval expected by the end of the summer. The issuer managing the investment was not revealed.
Mayor Fulop's Support
Mayor Fulop expressed strong support for cryptocurrencies and blockchain technology, deeming them significant innovations since the internet. On social media, he asserted that the debate on the permanence of crypto/Bitcoin is settled, affirming their victory.
Wisconsin's Precedent
In May, the Wisconsin State Investment Board allocated approximately $98.6 million, or 2% of its fund, to BlackRock’s iShares Bitcoin Trust, showcasing institutional interest in Bitcoin ETFs.
Ethereum ETF Approval
The SEC’s recent approval of Ethereum ETFs has spurred asset managers to develop new crypto-based investment products. ProShares filed paperwork for six funds offering long and short exposure to Bitcoin and Ethereum. Hashdex is also planning to combine Bitcoin and Ethereum into a single investment vehicle.
Surging Demand for Crypto ETFs
The launch of the first Bitcoin and Ethereum ETFs in the US has led to more than $17.5 billion in net inflows in 2024, surpassing some major tech-focused ETFs. Athanasios Psarofagis, an ETF analyst at Bloomberg Intelligence, noted the unexpected success of these ETFs, encouraging issuers to create more innovative products.