Jersey City Pension Fund Plans Bitcoin ETF Purchase in Coming Weeks
Jersey City’s pension fund intends to purchase bitcoin ETFs in the upcoming weeks after initiating the allocation process earlier this year.
This decision follows Donald Trump’s election win, which analysts believe may trigger increased institutional adoption of cryptocurrencies.
Jersey City Mayor Steven Fulop expressed a desire for earlier involvement at lower prices but remains optimistic about future valuations. He stated that Jersey City’s pension fund aims to gain exposure to BTC funds.
Business Administrator John Metro noted discussions about bitcoin ETFs began around the same time Wisconsin’s investment board announced a $100 million allocation in May.
Metro presented the proposal to the pension fund's board, which had questions regarding the investment horizon but did not oppose it. Due to the limited track record of US spot bitcoin ETFs, the board updated its investment rules prior to proceeding.
Metro indicated the pension fund, valued at approximately $225 million, plans to explore BTC products from BlackRock and Fidelity, potentially establishing a 2% position by reallocating from other assets.
Fulop compared bitcoin to gold as a “store of value,” highlighting bitcoin's advantages in terms of transferability.
Fulop has been interested in crypto since 2018, viewing it as an inevitable asset class. He acknowledged Trump's political strategy to engage younger Americans holding crypto wallets.
Currently, the pension fund is focused solely on bitcoin and has not considered allocating to ether ETFs. Fulop believes Ethereum will persist but recognizes the need for caution among fiduciaries.
There are no immediate plans to accept cryptocurrency for city transactions due to price volatility concerns.
This interview was edited for clarity and brevity.