Florida’s CFO wants retirement funds to invest in Bitcoin to hedge against the risks posed by traditional investments.
Florida’s state fire marshal and elected chief financial officer, Jimmy Patronis, has made his intent clear: he wants the Florida Growth Fund to dedicate investments toward digital assets, specifically Bitcoin.
“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 wrote in a letter to the executive director of the Florida State Board of Administration (SBA), Chris Spencer.
Florida’s CFO also asked the SBA to publish a report on the benefits and risks of using digital assets as an investment medium for the state’s retirement funds. He has requested that the report be published on March 4, 2025, before the next legislative session.
“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,” Patronis wrote on X. “Today, I sent a letter to @FloridaSBA requesting a report on digital currencies. #BTC #Bitcoin.”
Florida’s SBA handles over 30 funds, one being the Florida Retirement System Trust Fund, holding $205 billion worth of assets under management (AUM) as of the end of last month. Patronis wants the SBA to create a “Digital Asset Investment Pilot Program” under the Florida Growth Fund. This fund has the permission to use up to 1.5% of Florida Retirement System Trust Fund’s AUM. To that end, the Florida Growth Fund has invested $998 million from the retirement fund into high-growth investment strategies between 2022 and 2024.
“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,” Patronis further said. “This is where the potential of investing in a cryptocurrency, like Bitcoin, becomes particularly compelling.”
Florida Will Join Wisconsin and Michigan If It Invests in BTC Pension Fund
As Florida makes its move into the digital asset space, Wisconsin and Michigan have already done so. The State of Wisconsin Investment Board (SWIB) reported in May that it had invested $164 million into BlackRock and Grayscale BTC ETFs. That investment represents 0.1% of the fund’s total AUM. In July, the State of Michigan Retirement System reported that it held 111,000 shares in the ARK 21Shares BTC ETF—amounting to 0.003% of its AUM.
