The Arizona State Senate has taken a significant step towards evaluating the potential integration of bitcoin Exchange-Traded Funds (ETFs) into the retirement funds managed by the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS). The resolution, which passed with a 16-13 vote, was introduced by Republican State Senator Wendy Rogers and reflects the growing interest of the state in digital asset investments following the U.S. Securities and Exchange Commission’s (SEC) approval of bitcoin ETFs.
Background: Arizona’s Interest in Digital Asset Investments
Senator Rogers, who has previously advocated for bitcoin’s legalization as tender within the state, spearheaded this resolution. Her previous bill in 2022, which aimed to make bitcoin legal tender, did not progress beyond committee markup. The recent resolution could provide a pathway for the ASRS and PSPRS to explore new investment opportunities in the digital asset market.
Exploring the Feasibility of bitcoin ETFs for Retirement Portfolios
The non-binding concurrent resolution, which does not require Arizona Governor Katie Hobbs’ signature, mandates the ASRS and PSPRS to conduct a thorough analysis of the potential risks, benefits, and feasibility of investing in digital asset ETFs. The report, which is expected to be presented to the Arizona State Senate, will include a detailed list of options and recommendations for how the state might safely invest in this asset class.
A Growing Trend: Cryptocurrency Investments by States and Municipalities
This move by the Arizona State Senate follows a larger trend of states and municipalities exploring digital asset investments. For example, a pension fund for firefighters in Houston, Texas, allocated $25 million towards bitcoin and Ether investments in 2021, while the Virginia Retirement System began investing in crypto-related ventures as early as 2019.
Moving Forward: Consideration by the State House Ways and Means Committee
The resolution, which is now before the state House Ways and Means Committee for further consideration, represents a significant step toward potentially broadening the investment strategies of Arizona’s state retirement systems with bitcoin ETFs. The outcome of this committee review will shed light on the future direction of digital asset investments for the ASRS and PSPRS.
This resolution underscores Arizona’s forward-thinking approach to digital assets, reflecting the growing interest and adoption of these investments by states and municipalities across the United States.
For more information on this topic, please refer to Senate Concurrent Resolution 1016.
(Note: This article is intended to provide information and should not be considered as financial advice or investment recommendations.)
