Arizona State Senate Evaluates Proposal for Bitcoin ETF Inclusion in Retirement Plans
Summary:
The Arizona State Senate is considering a proposal that encourages the inclusion of Bitcoin exchange-traded funds (ETFs) in two state retirement systems - the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS). The proposal, which passed the Senate's Third Reading, is undergoing a second review in the house. If approved, both ASRS and PSPRS would give thought to adding Bitcoin ETF exposure to their portfolios and closely monitor Bitcoin ETF industry developments. The move is seen by some experts as a strategic effort for portfolio diversification and risk mitigation.
A potential legislation encouraging the incorporation of Bitcoin exchange-traded funds (ETFs) in two state retirement plans is being mulled over by the Arizona State Senate. After successfully passing the Senate's Third Reading with a 16-13 vote on 22nd of February, the proposal is going through a second review in the house, reports suggest. The passing of the proposal would result in the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) contemplating on the addition of Bitcoin ETFs exposure to their respective portfolios, state records indicate.
The Bitcoin retirement resolutions were originally put forth to the Senate for reading on 30th January 2024, proposing that ASRS and PSPRS closely follow advancements in the Bitcoin ETF sector. This would involve assessing the potential repercussions of incorporating Bitcoin ETFs into their retirement portfolios and require consultation with firms providing SEC-approved Bitcoin ETFs.
An all-encompassing report would consequently be needed for submission to the major offices including the state's Treasurer, Senate President, and House of Representatives Speaker. This report would highlight the feasibility, potential risks, benefits stemming from the addition of Bitcoin ETF exposure, and the safeguarding measures adopted.
The document also suggests that consideration would be given to other digital asset ETFs.
Dennis Porter, CEO of Satoshi Action Fund, sees this initiative as a strategic attempt to foster portfolio diversification and diminish investment risk. He points out that incorporating even a small percentage of Bitcoin ETF exposure could significantly mitigate portfolio risk.
"Arizona is interested in capitalizing on the inherent worth and probable steadiness offered by Bitcoin, similar to traditional secure investments like gold, via the consideration of Bitcoin ETFs," he elaborated in a 6th March post.
John Palmer, President of the Chicago Board Options Exchange, speculated earlier this year that an approval for a spot Bitcoin ETF could set the stage for pension and retirement investment account funds to venture into Bitcoin via the ETFs.
Published At
3/7/2024 3:01:41 AM
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