Jersey City’s Municipal Pension Fund to Invest in Bitcoin ETFs

The municipal pension plan of Jersey City, New Jersey, is set to enter the cryptocurrency market by investing in Bitcoin through exchange-traded funds (ETFs).

In a recent announcement on X, Mayor Steven Fulop disclosed plans to allocate a portion of the city’s pension fund to crypto ETFs. Fulop, a key political figure in Jersey City since 2013, highlighted the growing acceptance and integration of cryptocurrencies in the financial sector.

“Not my normal subject matter in a post but I’ll share anyway – the question on whether [c]rypto/Bitcoin is here to stay is largely over [and] crypto/Bitcoin won,” Fulop wrote.

Regulatory Navigation for Jersey City’s Pension Fund

The Employees Retirement System of Jersey City is currently working through regulatory requirements with the U.S. Securities and Exchange Commission (SEC) to facilitate this investment. Mayor Fulop anticipates that this transition will be completed by the end of the summer.

While specific details about the percentage of pension funds allocated to Bitcoin ETFs remain undisclosed, Fulop suggested that Jersey City’s strategy would be similar to Wisconsin’s state pension fund, which allocated 2% of its assets to Bitcoin ETFs earlier this year. The specific Bitcoin ETF for Jersey City’s investment has yet to be announced.

Fulop also reiterated his long-standing belief in the potential of decentralized ledger technology. “I’ve been a long time believer (through ups/downs) in crypto but [b]roadly, beyond crypto [I] do believe blockchain is amongst the most important new technology innovations since the internet,” he asserted.

Growing Trend Among Public Pension Funds

This move is part of a broader trend of public pension funds exploring cryptocurrency investments. Notable examples include Wisconsin’s State of Wisconsin Investment Board, which made a significant $160 million investment in spot Bitcoin ETFs earlier this year. Similarly, smaller funds like the Houston Firefighters’ Relief and Retirement Fund have maintained crypto exposure for several years.

Bitcoin’s Prominent Visibility

In another notable development, Bitcoin recently made a debut on the Las Vegas Sphere, a massive globe-like screen, thanks to an advertisement from crypto exchange Crypto.com. This marks a significant milestone as Bitcoin becomes the first cryptocurrency to secure such a high-profile advertising spot.

Additionally, digital asset investment products saw substantial inflows, with Bitcoin attracting $1.27 billion last week, contributing to a total of $3.2 billion in inflows over the past three weeks.