Jersey City Mayor Steven Fulop Announces Plans to Invest a Portion of the City's Pension Fund into Bitcoin ETFs

Fulop, who has held office since 2013, revealed on July 25 that the city's pension fund is in the process of updating its paperwork with the US Securities and Exchange Commission (SEC) to include this new investment strategy.

Jersey City Mayor Steven Fulop has announced that a portion of the city's pension fund will be directed towards Bitcoin exchange-traded funds (ETFs).

In a statement on Tuesday, Fulop, who has been in office since 2013, said the city's pension fund is updating its paperwork with the U.S. Securities and Exchange Commission to include the new investment strategy.

"The question on whether crypto/Bitcoin is here to stay is largely over + crypto/Bitcoin won," Fulop said in a post on Twitter on Tuesday. "The #JerseyCity pension fund is in the process of updating paperwork to the SEC to allocate % of the fund to Bitcoin ETFs."

The mayor, who did not specify the precise percentage of the fund that would be allocated to Bitcoin ETFs, said it would be comparable to the 2% allocation made by the Wisconsin Pension Fund.

"This is a class of assets that, with blockchain, I believe is one of the most transformative technologies since the internet," Fulop said in the statement, which was shared on X.

The move would align Jersey City with the State of Wisconsin Investment Board, which disclosed exposure to spot Bitcoin ETFs from Grayscale and BlackRock in May. At the time, Wisconsin's crypto investments amounted to $164 million out of its roughly $156 billion in assets.

The SEC's approval in January for listing and trading spot Bitcoin ETFs on U.S. exchanges paved the way for such investments. However, public pension funds have been slow to embrace this strategy, with only Wisconsin and Jersey City currently considering crypto ETFs.

Notably, Fulop's statement did not mention any plans to invest in spot Ether ETFs, which began trading in the U.S. on July 23.

Major financial institutions like Wells Fargo and JPMorgan Chase have made only minimal investments in spot Bitcoin ETFs, to the tune of less than $1 million combined, which is a drop in the bucket compared to their vast asset portfolios.

This initiative by Mayor Fulop marks a significant step for Jersey City, potentially setting a precedent for other municipalities to explore similar investments in the burgeoning field of cryptocurrency.

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