26 C
New York
Sunday, July 21, 2024

Arizona Senate Seeks to Add Bitcoin ETFs to State Retirement Portfolios

Must read

The US state of Arizona has joined a slew of pro-Bitcoin states in embracing the asset class. Arizona Senate has proposed a resolution to consider recently-approved Bitcoin ETFs as potential investments tool for the state’s retirement system.

Arizona has already been proven open to technological advances. In January 2023, it introduced a bill which would permit the State to receive tax payments in cryptocurrency.

Per the recent bill, Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) is seeking to add exposure to Bitcoin ETFs in their portfolios.

Provisions “expresses that the Legislature encourages ASRS and PSPRS to closely monitor developments in Bitcoin ETFs and other digital asset ETFs and consider the implications of including such assets in their investment portfolio.”

Further, the bill encourages to submit a “comprehensive report” on the feasibility, risk and benefits of adding Bitcoin ETF exposure. It would include options and recommendations for “safely investing” in the asset class, submitted to key state officials.

Bitcoin ETFs are ‘Safe-Haven’ Investments Like Gold

According to Dennis Porter, CEO of the Satoshi Action Fund, the resolution would be a “strategic effort to enhance portfolio diversification and reduce investment risk.”

“By considering Bitcoin ETFs, Arizona is looking to leverage the inherent value and potential stability offered by Bitcoin, akin to traditional safe-haven investments like gold.”


Once passed this Resolution will ask State pension fund managers and State Treasures to study the #Bitcoin ETF.

Thank you to @JakeHoffmanAZ for leading this effort and for ensuring AZ…

— Dennis Porter (@Dennis_Porter_) March 6, 2024

He also noted that adding Bitcoin ETFs could significantly mitigate risks within an asset portfolio, thus challenging skepticism surrounding Bitcoin.

“We believe adding even a small amount of a Bitcoin ETF could Dramatically de-risk an asset portfolio,” Porter wrote. “Arizona is just the beginning of the process. Other states are coming around to this as well and you will see more announcements on the ‘BTC ETF Resolution’ soon.”

Despite the inherent volatility of cryptos, they are an interesting diversification tool due to their decentralized nature and potential for high returns.

Additionally, exchange-traded funds backed by Bitcoin offers unique benefits for retirement planning. This gives a balanced approach that combines traditional and digital assets, contributing to the portfolio’s overall risk balance.

The post Arizona Senate Seeks to Add Bitcoin ETFs to State Retirement Portfolios appeared first on Cryptonews.

More articles

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments

Latest News