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The city of Jersey announced that its municipal pension plan will invest in Bitcoin (BTC) through a spot Bitcoin ETF, a symbolic moment in the cryptocurrency industry as it looks to drive broader adoption.
Ahead of the Jersey City announcement, Wisconsin also announced it was purchasing about $100 million worth of BlackRock's spot Bitcoin ETF.
Spot Bitcoin ETF Plans in Jersey City
The decision to allocate a percentage of the city’s pension fund to Bitcoin ETF purchases was announced in a post by the city’s mayor, Steven Fulop, in which he outlined his support for cryptocurrencies, particularly Bitcoin.
“The question of whether crypto/bitcoin will last is pretty much over. + Crypto/bitcoin has won. #JerseyCityPensionFund is in the process of updating its SEC filings to allocate a % of its fund to a Bitcoin ETF, similar to what the Wisconsin Pension Fund did (2%). I'm sure it will be done by the end of the summer and eventually become more common.”
The allocation is not expected to be large, but it is seen as a historic moment in the broader adoption of cryptocurrencies. Fulop added that the pension fund, Jersey City Employees’ Pension System, is in the process of updating its filings with the Securities and Exchange Commission (SEC) to allocate a percentage of its funds to the Bitcoin ETF, and that the investment is expected to be completed by the end of the summer.
Long-time supporter of cryptocurrencies
A Jersey City mayor since 2013, Fulop has long been a supporter of the crypto industry, despite its ups and downs. A Democrat, Fulop plans to run for governor in 2025, as New Jersey Gov. Phil Murphy has already served two terms and is ineligible for reelection. Speaking about the crypto industry, Fulop said:
“Broadly, beyond cryptocurrencies, I believe blockchain is one of the most important new technological innovations since the Internet.”
As support for cryptocurrencies and Bitcoin grows, politicians want to be seen as more open to the concept, and it has become important for them to share their views on the topic during the election period. Interest in spot Bitcoin ETFs has skyrocketed since their launch, with ETFs seeing billions of dollars in inflows in just six months. With the recent launch of an Ethereum ETF, crypto ETFs are gaining traction right as the presidential election approaches.
Wisconsin announces similar plan
Jersey City’s announcement comes just months after Wisconsin announced it was buying 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT) worth about $100 million, making it the first state to publicly disclose a Bitcoin-related purchase. The state’s investment committee also bought $64 million worth of Grayscale Bitcoin Trust (GBTC). Commenting on the purchase, ETF analyst Eric Balchunas said:
“You don't typically see these large fish institutions in a 13F for a year or so when an ETF gets more liquid, but as we've seen, this is not your run-of-the-mill launch. It's a good sign, and institutions tend to move in groups, so expect to see more.”
Disclaimer: This article is provided for informational purposes only. It is not provided or intended to be legal, tax, investment, financial or other advice.
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