Municipal Pension Fund of Jersey City Ventures into Bitcoin Exchange-Traded Funds

In a notable development heralding the progressive embrace of digital assets, Jersey City, New Jersey, is poised to channel its municipal pension plan into the realm of bitcoin through exchange-traded funds (ETFs). This strategic move was unveiled on social media by Mayor Steven Fulop.

While the investment might not be substantial, it represents a significant milestone in the broader acceptance of cryptocurrency. This decision mirrors a similar move by a Wisconsin pension fund earlier this year, reinforcing the trend toward crypto integration in traditional investment portfolios.

Steven Fulop, who has held the mayoral office in Jersey City since 2013, shared the news on X (formerly Twitter), stating: “Not my normal subject matter in a post but I’ll share anyway – the question on whether [c]rypto/Bitcoin is here to stay is largely over [and] crypto/Bitcoin won.”

Fulop, a Democrat with gubernatorial ambitions for New Jersey’s 2025 election, added that the city’s Employees Retirement System is in the process of updating its documentation with the U.S. Securities and Exchange Commission (SEC) to facilitate the allocation of a portion of the fund to bitcoin ETFs. According to Fulop, the investment is expected to be finalized by the end of the summer.

Although the exact amount of the pension fund to be invested in bitcoin ETFs was not disclosed, Fulop mentioned it would be similar to the 2% allocation made by Wisconsin’s state pension fund earlier this year. The specific bitcoin ETF under consideration for Jersey City’s investment remains unspecified.

“I’ve been a long time believer (through ups/downs) in crypto but [b]roadly, beyond crypto [I] do believe blockchain is amongst the most important new technology innovations since the internet,” Fulop stated.

The growing interest from public pension funds in bitcoin is becoming increasingly evident. Wisconsin’s public pension plan, the State of Wisconsin Investment Board, which manages approximately $156 billion in assets, made a significant $160 million investment into spot bitcoin ETFs earlier this year. Other smaller pension funds, such as the Houston Firefighters’ Relief and Retirement Fund, which oversees about $5 billion in assets, have been invested in crypto for several years.

Additionally, the pensions of Fairfax County, Virginia, ventured into crypto exposure through VanEck’s New Finance Income Fund, which became a creditor to the crypto firm Genesis during its bankruptcy proceedings last year.

On the international front, public pension plans like Japan’s $1.4 trillion Government Pension Investment Fund, the largest pension plan globally, have also shown interest in bitcoin investments, issuing a request for information earlier this year.

Fulop expressed confidence in the growing trend of pension funds allocating to crypto, stating, “I’m sure eventually it will be more common.”

As of now, the Jersey City Mayor’s Office has not responded to requests for further comments. This development marks a pivotal step in the intersection of traditional finance and digital assets, underscoring the evolving landscape of investment strategies in the modern era.