US. Michigan joins Wisconsin pension fund with bitcoin investment
When the Securities and Exchange Commission approved bitcoin exchange-traded funds, one of the questions after the approval was whether institutional investors would now be more comfortable investing in the cryptocurrency using those vehicles.
It joins its neighboring swing-state retirement fund in investing in the cryptocurrency. The State of Wisconsin Investment Board previously has shown up in the top shareholder lists for the iShares Bitcoin Trust and the Grayscale Bitcoin Trust .
The Jersey City, N.J., pension fund is looking to invest as well, the city’s mayor said in a social-media post, with an allocation similar to Wisconsin’s of 2%.
Jeroen Blokland, manager of the Blokland Smart Multi-Asset Fund, said the state fund investments are significant and break a taboo.
“Pension fund boards often fear reputational risk, leading to a prolonged status quo. Not exactly a climate in which you would easily invest in bitcoin,” said Blokland.
“In addition, if investors and boards also start to connect the dots regarding bonds (abundant, low returns, more risk, and less diversification), the hunt for truly scarce assets can quickly escalate,” he added.
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