The mayor of the city has announced that the Jersey City pension fund will allocate a portion of its portfolio to Bitcoin ETF investments.
The spot Bitcoin ETFs have continued to attract steady inflows since their approvals in 2024. With a growing base of investors, they have also attracted funds that have traditionally invested in asset classes like equity or debt. One of these funds, the Jersey City pension fund, will now go ahead with Bitcoin ETF investments.
The city’s mayor, Steven Fulop, took to social media to announce the decision. He said the allocation would happen before the end of summer and that the city was preparing the paperwork for regulators. Earlier, the Wisconsin pension fund had invested 2% of its corpus in the spot Bitcoin ETFs. Fulop echoed that their investment would be a similar one, although he did not specify the quantum of investments.
Meanwhile, the Wisconsin pension fund has invested in the BlackRock and Grayscale spot Bitcoin ETFs. Their investments amounted to around $164 million back in May 2024. Moreover, this decision by Jersey City also coincides with the recent approval of the spot ether ETFs.
The approval and subsequent launch of spot ether ETFs marks a pivotal moment for the crypto industry. Besides, the crypto ETFs may have a long-term positive impact on the ecosystem, from aspects of regulation to adoption.
One of the most significant benefits of crypto ETFs is their potential to accelerate institutional and retail adoption of crypto. They provide a regulated and familiar investment vehicle to the investors, making it easier for them to gain exposure to crypto. This has been an easier route for many investors, who may often find crypto investments unfamiliar initially.
Many more funds and institutions could also take the cue from Wisconsin and Jersey City to invest in the ETFs.
Check out Millionero’s blog for the latest crypto updates!