Florida’s Chief Financial Officer Jimmy Patronis is advocating for Bitcoin investments within the state’s pension funds, urging the Florida State Board of Administration (SBA) to evaluate the benefits and risks of adding cryptocurrency to its portfolio. This request aligns with former President Donald Trump’s recent proposals to establish a national Bitcoin reserve.
Why Florida Is Considering Bitcoin for Pensions
Patronis, in an October 29 letter to SBA’s Executive Director Chris Spencer, described Bitcoin as “digital gold,” suggesting it could diversify Florida’s portfolio while hedging against traditional asset volatility. The letter requests a detailed report on the feasibility and potential benefits of allocating a portion of Florida’s retirement funds to digital assets, aiming for delivery before the state’s legislative session on March 4, 2025.
The SBA currently oversees over 30 funds, including the Florida Retirement System Trust Fund, which holds approximately $205 billion. Patronis proposed launching a “Digital Currency Investment Pilot Program” within the Florida Growth Fund, which already uses a small percentage of pension funds to target high-growth investments. This fund has invested close to $998 million in emerging sectors between 2022 and 2023.
Aligning with Florida’s Anti-CBDC Stance
In addition to diversifying Florida’s investment strategy, Patronis highlighted that incorporating Bitcoin could reinforce the state’s stance against central bank digital currencies (CBDCs). Governor Ron DeSantis has previously taken measures to block CBDC use in Florida, with Patronis noting that decentralized assets like Bitcoin directly oppose central bank currencies.
Other States Moving Toward Bitcoin Investments
Florida’s exploration of Bitcoin for pension funds follows similar moves in states like Wisconsin and Michigan. The State of Wisconsin Investment Board (SWIB) allocated around $164 million into Bitcoin ETFs by Grayscale and BlackRock, representing about 0.1% of its total assets. Likewise, Michigan’s state retirement system invested in 110,000 shares of ARK 21Shares’ Bitcoin ETF, amounting to roughly 0.003% of its assets under management.
Should Florida proceed with Bitcoin investments, it would join a growing list of U.S. states that are increasingly incorporating cryptocurrency into state-managed funds as a strategy for potential growth and diversification.
