Jersey City Mayor Steven Fulop recently made an announcement regarding the city’s pension fund. The pension fund is updating its documentation with the US Securities and Exchange Commission (SEC) to include exposure to Bitcoin exchange-traded funds (ETFs). This move comes after the Wisconsin Pension Fund allocated 2% of its $156 billion in assets to Bitcoin ETFs in the second quarter.
Fulop expressed his support for cryptocurrencies and blockchain technology, stating that he has been a long-time believer in their potential. He emphasized that blockchain is one of the most important technological innovations since the internet. This decision by Jersey City signals a growing acceptance of digital assets in municipal financial strategies.
Despite the approval of spot Bitcoin ETFs on US exchanges earlier this year by the SEC, Jersey City and Wisconsin are among the few public entities exploring investments in Bitcoin ETFs. Fulop did not mention any plans to invest in other cryptocurrencies or related assets like Ethereum ETFs, which recently began trading.
Major financial institutions like Wells Fargo and JPMorgan Chase have shown limited engagement with Bitcoin ETFs, with combined investments of less than $1 million. However, Fulop’s decision indicates a positive shift towards recognizing the potential of digital assets.
The implementation of Bitcoin ETFs in the Jersey City pension fund is expected to be completed by the end of the summer. Fulop is confident that such investments will become more common in the future. The news of Jersey City’s involvement in Bitcoin ETFs had a positive impact on the price of Bitcoin, which was trading at $66,000 at the time of the announcement.
In the broader cryptocurrency market, the total market value is currently at $2.34 trillion with a 24-hour trading volume of $91.79 billion. Bitcoin dominance stands at 55.31% as of the latest data. This move by Jersey City reflects a larger trend of increasing acceptance and integration of digital assets into traditional financial strategies.