Steven Fulop, the long-time mayor of Jersey City, has unveiled a bold plan to incorporate Bitcoin exchange-traded funds (ETFs) into the city’s pension fund.
This decision marks a significant shift in the city’s investment strategy, aligning with Fulop’s belief in the future of cryptocurrency and blockchain technology.
On July 25, Mayor Fulop shared on social media that Jersey City’s pension fund is in the process of updating its documentation with the U.S. Securities and Exchange Commission (SEC) to include Bitcoin ETFs.
Although he did not specify the exact percentage of the fund that would be allocated to crypto, he hinted that it might be similar to the 2% allocation seen in Wisconsin’s pension fund.
“I’ve been a long-time believer in crypto, despite its ups and downs,” said Fulop. He also emphasized his broader belief in blockchain technology, which he regards as one of the most significant innovations since the advent of the internet.
The State of Wisconsin Investment Board had previously reported significant investments in Bitcoin ETFs from Grayscale and BlackRock, totalling $164 million out of its $156 billion in assets. This move has set a precedent that Jersey City seems ready to follow.
The SEC’s approval of spot Bitcoin ETFs earlier this year has opened doors for public pension funds to explore these investments.
However, only Wisconsin and Jersey City have publicly indicated an interest so far. Fulop did not mention plans to invest in Ether ETFs, which started trading in the U.S. on July 23.
In contrast, major financial institutions like Wells Fargo and JPMorgan Chase have shown minimal interest in Bitcoin ETFs, with less than $1 million combined in investments. This represents a tiny fraction of their extensive asset portfolios.
