Source: cryptoslate
Compiled by: Blockchain Knight
Jersey City is the second largest city in New Jersey. On July 25, Jersey City Mayor Steven Fulop announced plans to invest a portion of the city’s pension fund in a BTC ETF, an important step in incorporating crypto assets into the municipal financial strategy.
Fulop posted on social media that the Jersey City Pension Fund is updating its filings with the U.S. Securities and Exchange Commission (SEC) to include a BTC ETF.
The move follows a similar decision by the Wisconsin Pension Fund to allocate 2% of its $156 billion in assets to a BTC ETF in the second quarter.
Experts believe that other states will soon follow suit and diversify a portion of their portfolios with a BTC ETF.
Fulop added: “The discussion about whether crypto assets or BTC will continue to be adopted is basically over, and the decision will continue to move forward.”
BTC ETFs have recorded impressive performance since their launch, with BlackRock’s IBIT recently surpassing Nasdaq’s QQQ in terms of inflows this year.
Fulop, who has served as the city’s mayor since 2013, stressed that he has long been a supporter of crypto assets and blockchain technology.
Fulop highlighted the huge potential of these innovative technologies, saying: “I have been a believer in crypto assets for a long time, but broadly speaking, beyond crypto assets, I do believe that blockchain is one of the most important new technological innovations since the internet.”
The SEC approved spot BTC ETFs to be listed and traded on U.S. exchanges earlier this year, paving the way for public pension funds to consider such investments.
However, Jersey City and the state of Wisconsin remain among the few public entities exploring this avenue, although more are expected to follow in the third quarter.
Additionally, Fulop did not mention any plans to invest in other crypto assets or related assets, such as the Ethereum ETF that began trading earlier this week.
While large financial institutions such as Wells Fargo and JPMorgan Chase have had limited participation in the BTC ETF, with a combined investment of less than $1 million, Fulop’s decision demonstrates the growing acceptance and recognition of the potential of digital assets.
As the city’s paperwork with the SEC progresses, the implementation of the BTC ETF among pension funds is expected to be completed by the end of summer. Fulop believes that such investments will become more common in the future.
