According to Blockworks, the Arizona state Senate has advanced a resolution encouraging lawmakers and state retirement fund managers to consider allocating a portion of portfolios to bitcoin ETFs. The concurrent resolution was introduced shortly after the US Securities and Exchange Commission allowed bitcoin ETFs to start trading. The Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) are urged to monitor these new investment vehicles and consider adding exposure. The state Senate passed the resolution in a 16-13 vote, with all Democrats voting against the measure. The text is now before the state House Ways and Means Committee.
Republican state Senator Wendy Rogers, who previously spearheaded an effort to make bitcoin legal tender in Arizona, voted in favor of the resolution. If passed, the resolution will ask the ASRS and PSPRS to create a report on the feasibility, risk, and potential benefits of directing a portion of state retirement system funds into digital asset ETFs. This includes a list of options and recommendations for how the state might safely invest in the digital asset class.
States have previously considered adding crypto exposure to pensions and retirement plans, but the newly-approved bitcoin spot ETFs provide a more accessible onramp. A pension fund for firefighters in Houston, Texas, announced a $25 million investment in bitcoin and ether in 2021, while a Fairfax County Police Officers Retirement System in Virginia started allocating funds to crypto-related investments in 2019. A CFA Institute survey in April 2022 found that 94% of state and government pension plan sponsors reported investing in crypto, although the nature of the investment vehicle was not specified. The US Department of Labor has warned retirement plan fiduciaries to exercise extreme care before considering adding a cryptocurrency option to a 401(k) plan's investment menu.
