The Arizona State Senate has passed a resolution to consider digital assets – specifically Bitcoin exposure – as potential investments for the state’s pension systems.
The 56th legislature — Concurrent Senate Resolution 1016 (SCR 1016) – Proposes that the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) explore the feasibility of including digital asset ETFs, such as Bitcoin ETFs, in their portfolios.
The ASRS and the PSPRS – established in 1953 and 1968, respectively – serve as the backbone for retirement benefits for Arizona’s public employees, including those who perform hazardous duties such as firefighters and police officers. These systems ensure that civil servants have a secure financial basis upon retirement.
Based on public disclosures, the two pension funds will collectively have approximately $70.2 billion in assets under management as of 2024.
SCR 1016
The essence of SCR 1016 is a gentle push on these pension systems to carefully assess the impact of integrating digital asset ETFs into their investment strategies.
The resolution advises funds to stay abreast of developments in digital assets, including Bitcoin ETFs, and consult with companies that have received approval to offer such financial products.
Furthermore, it calls for a comprehensive analysis of the feasibility, benefits and risks associated with converting state pension funds into digital assets.
This report, to be prepared for the legislative and executive branches before the start of the next legislative session, aims to establish a roadmap for potentially safe investment practices in the digital asset space.
ETF impact
The recent launch of spot Bitcoin ETFs and their record performance in recent weeks have had a noticeable impact on investor sentiment, and many are beginning to consider Bitcoin as a viable option for their investment portfolios.
The Newborn Nine amassed more than $11 billion in assets under management (AUM) in their first month of trading and continued their stellar performance to culminate in a total AUM of approximately $22 billion as of March 5 – with IBIT accounting for $10 billion.
Including GBTC, total assets under management are a remarkable $47 billion at the time of writing, according to CoinGlass. facts.
The rapid accumulation indicates strong demand for regulated, accessible investment products that directly track the price of Bitcoin. Meanwhile, interest in the flagship crypto is expected to continue to increase as it approaches the fourth mining reward halving around mid-April.