The goal is to add more legitimacy to the digital currency ecosystem and capitalize on Bitcoin’s strength
Arizona State Senators are considering a proposal to include Bitcoin exchange-traded funds (ETFs) in two state retirement portfolios. The House is reviewing the resolution for a second time after it passed the Senate’s Third Reading on February 22 by a 16–13 vote.
If passed, the recommendation would push the Public Safety Personnel Retirement System (PSPRS) and the Arizona State Retirement System (ASRS) to consider promoting Bitcoin ETFs in their portfolios.
The Senate first introduced and read the Bitcoin retirement resolutions on January 30, 2024. It encourages the ASRS and PSPRS to monitor industry developments in Bitcoin ETFs and evaluate the “implications” of allotting them to their retirement portfolios. This would involve conferring with companies that offer Bitcoin ETFs that are approved by the US Securities and Exchange Commission.
A “comprehensive report” must then be sent to the President of the Senate, the Speaker of the House, and the Arizona State Treasurer, summarizing the risks, feasibility and likely benefits of adding Bitcoin ETF exposure and the security safeguards they will take.
The document also states that other digital asset ETFs would be considered.
The CEO of the Satoshi Action Fund, Dennis Porter, said the action could be viewed as a strategic step to improve portfolio diversification and lower investment risk, adding that even a limited amount of exposure for Bitcoin ETFs could “dramatically” lower the risk of an asset portfolio.
Porter commented, “By considering Bitcoin ETFs, Arizona is looking to leverage the inherent value and potential stability offered by Bitcoin, akin to traditional safe-haven investments like gold.”
Chicago Board Options Exchange president John Palmer predicted earlier this year that Bitcoin ETF authorization would “pave the way” for retirement investment account funds to invest in Bitcoin by purchasing the ETFs.
