In The Works: Jersey City Mayor’s Plan To Introduce Bitcoin ETFs Into Pension Funds

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As a seasoned crypto investor with a decade-long experience in the industry, I’ve witnessed the evolution of cryptocurrencies from a niche and obscure asset class to a mainstream investment option. The recent news that the Jersey City pension fund is considering investing in Bitcoin ETFs is a significant development that underscores the growing acceptance of digital assets within traditional financial systems.

In a noteworthy advancement demonstrating increasing acceptance of cryptocurrencies in conventional finance, the Jersey City pension fund is planning to assign an unspecified portion of its resources towards investing in Bitcoin Exchange-Traded Funds (ETFs).

Jersey City To Join Wisconsin In Bitcoin ETFs Investment

Based on Jersey Mayor Steven Fulop’s announcement, the city’s pension fund is in the process of revising its SEC documentation to enable investments in Bitcoin Exchange-Traded Funds (ETFs). This decision follows a comparable action taken by the Wisconsin Pension Fund earlier in the year.

The proportion of the fund earmarked for Bitcoin ETFs hasn’t been revealed yet, as we await the SEC’s final approval. This process is predicted to be concluded by the summer’s end.

In Thursday’s announcement, the mayor of Jersey City didn’t reveal which investment manager was chosen by the city’s fund to handle its investments. Meanwhile, Fulop expressed his views on Bitcoin and the cryptocurrency sector via social media.

Although I don’t typically delve into this topic in my posts, I’d like to weigh in on the ongoing debate about the longevity of Crypto and Bitcoin – a question that has essentially been answered with their persistent growth and widespread adoption.

Mayor Fulop, who identifies as a strong advocate for crypto, emphasized that blockchain technology ranks amongst the most groundbreaking innovations in technology since the advent of the internet.

Back in May, as Bitcoinist previously reported, the Wisconsin State Investment Board invested approximately $98.6 million, which equates to 2% of its total fund, in one of the top-performing Bitcoin ETFs and asset management firms, BlackRock’s iShares Bitcoin Trust.

Crypto ETF Frenzy Intensifies

After the Securities and Exchange Commission (SEC) gave its nod to Ethereum ETFs last Monday, there are reports that investment firms are expediting their plans to introduce various cryptocurrency investment offerings.

Based on a Bloomberg article, major players in the industry, such as ProShares, have submitted applications for six funds that aim to offer investors both long and short positions in Bitcoin and Ethereum. Simultaneously, companies like Hashdex are planning to merge Bitcoin and Ethereum into a solitary investment product.

The surge of recent product filings follows the successful launches of the first Bitcoin and Ethereum ETFs in the US, which occurred in January and Tuesday respectively. These ETFs have amassed over $17.5 billion in total net inflows this year, surpassing the flows of many tech-focused ETFs. According to Athanasios Psarofagis, an ETF analyst at Bloomberg Intelligence:

Surprisingly large inflows of assets into the first crypto ETFs launched this year have left analysts in awe, with these funds drawing in more investments than initially anticipated. This trend is undeniably encouraging issuers to explore increasingly innovative methods to capitalize on the robust demand from investors.

In The Works: Jersey City Mayor’s Plan To Introduce Bitcoin ETFs Into Pension Funds

Currently, the biggest cryptocurrency by market cap has experienced a significant decline in value over the past few hours, dropping to around $64,990. This represents a 2.3% decrease from its trading price on Wednesday.

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2024-07-26 07:34