According to the proceedings of the Arizona Senate, the state is pushing for a resolution aimed at encouraging legislators and fund managers of the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to consider allocating a portion of their investment portfolios to Bitcoin spot ETFs.
The resolution was passed by a vote of 16-13 in the Arizona Senate last month, with senators voting along party lines, with all Democrats voting against. The resolution has now been referred to the House Appropriations Committee for further consideration.
If passed, the resolution would require ASRS and PSPRS to prepare a report exploring the feasibility, risks, and potential benefits of allocating a portion of the state retirement system funds to digital asset ETFs, including a selection and recommendation list on how the state can securely invest in digital assets.
In fact, this is not the first time a US state government has considered adding crypto-related exposure investments to pension and retirement plans. In 2021, a firefighter pension fund in Houston announced a $25 million investment in Bitcoin and Ethereum through investment management firm NYDIG. The Fairfax County Police Officer Retirement System in Virginia also started allocating funds to crypto-related investments since 2019, including a $50 million investment in blockchain fund by Morgan Creek Capital.
However, the newly approved Bitcoin spot ETFs provide these retirement funds with a more accessible channel for investment, making it more favorable for retirement funds to begin incorporating Bitcoin into their portfolios.
