Jersey City Announces Plans To Invest In Bitcoin ETFs

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As a long-term crypto investor with a keen interest in the blockchain technology landscape, I view Jersey City’s decision to invest in Bitcoin ETFs as a significant step forward for the industry. Having witnessed the volatility and skepticism surrounding cryptocurrencies over the years, it is encouraging to see more mainstream institutions and governments taking an active interest in this emerging asset class.

Jersey City made headlines by revealing its intention to invest in Bitcoin (BTC) via spot Bitcoin ETFs for its municipal pension plan, marking a significant step for the crypto industry as it ponders broader acceptance.

Following the lead of Wisconsin, Jersey City made an announcement after investing approximately $100 million in BlackRock’s Bitcoin spot Exchange-Traded Fund (ETF).

Jersey City’s Spot Bitcoin ETF Plans 

City Mayor Steven Fulop revealed in a recent post his intention to invest a portion of the municipality’s pension fund into Bitcoin ETFs. In the announcement, he expressed his advocacy for cryptocurrencies, with a strong affinity towards Bitcoin.

The debate over whether Crypto or Bitcoin will persist has essentially been resolved in their favor. The Jersey City pension fund is currently revising SEC documentation to invest a portion of its assets in Bitcoin ETFs, following suit with the Wisconsin Pension Fund’s 2% allocation. This process should be finalized by the end of summer, and it won’t be surprising if such investments become more prevalent over time.

The upcoming allocation of funds toward Bitcoin ETFs by the Employees Retirement System of Jersey City is considered a landmark event in the crypto world, despite the relatively small sum involved. The pension fund is currently in the process of revising its SEC filings to make this investment possible. I anticipate that this transaction will be finalized by the end of summer.

A Long-time Supporter Of Crypto 

Since taking office as Jersey City’s mayor in 2013, Fulop has openly expressed his years-long affinity for the cryptocurrency sector, acknowledging its volatility. As a Democrat, Fulop intends to run for New Jersey’s gubernatorial election in 2025, given that Governor Phil Murphy, also a Democrat, will have served the maximum allowed terms and cannot seek re-election. In reference to the crypto industry, Fulop shared his perspective by saying,

In simple terms, I firmly believe that blockchain, going beyond just cryptocurrencies, ranks as one of the most groundbreaking technological innovations since the advent of the internet.

As cryptocurrencies and Bitcoin gain increasing popularity among the public, politicians are eager to demonstrate their acceptance of the concept and express their views on it during campaigns. The launch of spot Bitcoin ETFs has sparked significant interest, with these funds attracting massive inflows totaling billions within six months. With the recent debut of Ethereum ETFs, crypto-based exchange-traded funds (ETFs) are making headlines and taking center stage in the run-up to the presidential election.

Wisconsin Announced Similar Plan 

Jersey City made its announcement recently, following Wisconsin’s revelation in the past few months about purchasing approximately 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT), valued at around $100 million. This marked the first reported state investment in Bitcoin. In addition to this, the state’s investment board acquired shares worth $64 million in the Grayscale Bitcoin Trust (GBTC). Regarding the acquisition, ETF expert Eric Balchunas commented:

In general, large financial institutions don’t join 13F filings with new ETFs for a year or two due to the lack of liquidity. However, considering the unusual circumstances of these recent launches, it’s a positive indication that more institutions may follow suit. Institutional investors often act in groups.

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2024-07-26 23:40