Following the approval of spot Ethereum Exchange Traded funds (ETFs) in the United States, the crypto adoption has massively surged. On July 25, 2024, Steven Fulop, the mayor of Jersey City since 2013, announced plans to allocate a portion of the city’s pension fund to cryptocurrency exchange-traded funds (ETFs).
Jersey City Mayor’s pension plan with crypto
In a post on the X (Previously Twitter), Mayor Fulop revealed that the Jersey City pension fund is updating its paperwork with the United States Securities and Exchange Commission (SEC) to include an investment in Bitcoin ETFs.
Although Mayor Fulop did not specify the exact percentage of the fund to be invested in crypto, he indicated it would be similar to the 2% allocated by the Wisconsin Pension Fund. Fulop said,
“I’ve been a long-time believer (through ups and downs) in crypto, but broadly, beyond crypto, I believe blockchain is one of the most important new technology innovations since the internet.”
The move comes amid growing interest in cryptocurrency investments among institutional investors. In May 2024, the State of Wisconsin Investment Board disclosed its exposure to spot Bitcoin ETFs issued by Grayscale and BlackRock, amounting to $164 million out of its $156 billion in assets.
The SEC approved the listing and trading of spot Bitcoin ETFs on U.S. exchanges in January 2024. So far, only the pension funds from Wisconsin and Jersey City are considering investments in these crypto ETFs.
While Mayor Fulop’s announcement has generated excitement among crypto enthusiasts, it is also noteworthy that major financial institutions like Wells Fargo and JPMorgan Chase have reported less than $1 million combined in spot Bitcoin ETF investments. This amount represents a tiny fraction of their trillions of dollars in assets, highlighting the cautious approach many large firms are taking toward cryptocurrency.
When does Jersey City invest in Crypto ETFs?
Mayor Fulop did not mention any plans to invest in spot Ether ETFs, which began trading in the U.S. on July 23. The potential inclusion of Ether ETFs could further diversify the city’s pension fund portfolio, aligning with the growing trend of incorporating various cryptocurrencies into institutional investment strategies. As Jersey City moves forward with its plans, the impact of this investment on the city’s pension fund and its beneficiaries will be closely watched.
Following all these developments in the crypto industry, the overall market looks bullish. Whereas, top crypto assets Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and BNB (BNB) experienced decent price surges after a market fall for the last two days. According to coinmarketcap, in the last 24 hours, BTC, ETH, SOL, and BNB have experienced a price surge of over 4.5%, 3.2%, 3.5%, and 3% respectively.
