Arizona Senate considers adding Bitcoin ETFs to retirement portfolios.

The Arizona State Senate is currently reviewing a proposal to promote the inclusion of Bitcoin exchange-traded funds (ETFs) in two retirement portfolios within the state. The resolution has already passed the Senate’s Third Reading with a 16-13 vote on February 22, and is now being reviewed by the House for the second time. If approved, the proposal would urge the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to consider incorporating Bitcoin ETF exposure into their respective portfolios. The resolution, introduced on January 30, 2024, requires the ASRS and PSPRS to closely monitor developments in the Bitcoin ETF industry and assess the potential implications of including Bitcoin ETFs in their retirement portfolios. They would need to consult with firms offering Securities and Exchange Commission-approved Bitcoin ETFs. A detailed report outlining the feasibility, risks, potential benefits, and safety measures associated with adding Bitcoin ETF exposure would need to be submitted to Arizona’s State Treasurer, President of the Senate, and Speaker of the House of Representatives. The resolution also states that other digital asset ETFs should be considered. Dennis Porter, CEO of Satoshi Action Fund, believes that this move is a strategic effort to diversify portfolios and reduce investment risks. He suggests that even a small amount of Bitcoin ETF exposure could significantly de-risk an asset portfolio. Porter highlights that Arizona is seeking to leverage the value and stability offered by Bitcoin, similar to traditional safe-haven investments like gold. The approval of a spot Bitcoin ETF by the Chicago Board Options Exchange earlier this year was seen by many, including its president John Palmer, as a significant step towards allowing pension and retirement investment funds to invest in Bitcoin through ETFs.