Pension in BTC - the US states adopting crypto fast

Introduction

Institutional adoption of crypto since the launching of BTC spot ETFs have been on the increase. From Blackrock to Ark 21Shares, more and more organizations are buying BTC for business and governance. In this report, we learn about some US states that are adding BTC to their pension funds, allowing for a future use of crypto to settle retirees. Adoption of crypto is coming fast and thick, isn't it? Lets take a quick look at how some 3 US states are leading the way in terms of institutional crypto adoption.

There are 2 US states and 1 city I covered in this report:

• Wisconsin
• Michigan
• Jersey City

Now lets quickly see how each of these institutions have taken a big step in crypto adoption.

Wisconsin holds more than $160m in BTC

Back in May 2024, the state of Winsonsin announced it has invested more than $160 million in Bitcoin through Grayscale and Blackrock. The announcement was made by the State of Wisconsin Investment Board (SWIB) as part of its large portfolio of securities investment. Winconsin was the first state in the US to venture into virtual assets investment. Although the amount was dwarfed by the overall amount in their securities porfolio,it represents a hallmark achievement for a government agency to adopt crypto.

The SEC continues to huntdown many crypto companies, securing the legal conviction of some top executives whose crypto business where deemed illegal. Considering the hostile atmosphere created by the US SEC, it becomes very significant that a state in the same environment could consider being the first to step into crypto or virtual assets.

The move by this US state of Winconsin likely did not go unnoticed by other states. As time went by, another US state and city decided to follow in the footsteps of Winconsin. Take a look at their crypto portfolio below.

Michigan invest $6m BTC in pension funds

Michigan is the next US state that has followed in the footsteps of Winconsin. This state just invested the equivalent of $6 million in BTC for its pension fund. The filing document could be seen here. While this amount is not too significant when compared to the entire pension fund, it represent an applaudable step in crypto adoption for this city.

For now, no one knows if these funds would be converted to fiat before paying retirees or they might receive direct BTC payments. However they choose to do it, crypto enthusiasts in the city would feel great about the move. It gave a huge facelift to how institutions are seeing cryptocurrencies. That also have a big positive effect on individuals in the city, including pensioners.

Jersey city filling for Bitcoin custody

Jersey City is preparing to also get into the crypto adoption bandwagon as they file for custody from the SEC. Once approval is gotten from relevant authorities, the City would not only start investing in BTC but will also allow citizens to hold digital assets legally. The Mayor of Jersey city Steven Fulop was really upbeat as he addresses his followers on X. He sounds so confident that crypto is here to stay and that its adoption will will get better with time. Check out his comments on X:

Not my normal subject matter in a post but I’ll share anyway - the question on whether Crypto/Bitcoin is here to stay is largely over + crypto/Bitcoin won. The #JerseyCity pension fund is in process of updating paperwork to the SEC to allocate % of the fund to Bitcoin ETFs similar to the Wisconsin Pension Fund has done (2%). It Will be completed by end of the summer and I’m sure eventually it will be more common. source

Spot ETF approval driving institutional adoption

The above laudable moves by these US states and city illustrate how far and fast institutional adoption of digital assets have gone. The figures might not be too significant compared to what is in securities portfolio. But the idea these these government agencies are officially into cryptos illustrates the push that crypto adoption has experienced in recent history.

Enterprise adoption of cryptocurrencies was not fast and standard before the days of BTC spot ETF's. The crypto sector was firmly in the hand of individual users and traders. But checking from the time the SEC approved spot ETFs, more and more institutions have seen the need to get involved in crypto investments. The growth of crypto adoption would have lots of positive acceleration as governments and large institutions get involved.

Each institution that adopts crypto represents a possibility that thousands of individuals would consider the same move. These enterprises have the masses as fans, customers or people they serve in the case of government institutions. Imagine a pensions board announcing that it now holds crypto as part of their funds. The millions of citizens in that state through that single announcement would have an opportunity to hear about crypto and get involved.

So it is heartwarming to see these institutions get involved through spot ETF's. They are helping to make mass adoption of crypto easier. Other US states and cities could learn from the above examples. Indeed the world of governance globally could consider implementing blockchain solutions at all levels.

Note: Thumbnail is from pixabay

Posted Using InLeo Alpha