Steven Fulop, the mayor of Jersey City since 2013, has announced plans to allocate part of the city’s pension fund to crypto exchange-traded funds (ETFs). This move marks a significant step in integrating cryptocurrency investments into public pension funds.
Mayor Fulop’s Announcement
In a July 25 post on X, 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 he did not specify the percentage of the fund to be allocated to crypto, he mentioned it would be similar to the 2% allocated by the Wisconsin Pension Fund.
“I’ve been a long-time believer (through ups/downs) in crypto but broadly, beyond crypto, I do believe blockchain is amongst the most important new technology innovations since the internet,” said Fulop.
Comparison with Wisconsin Pension Fund
In May, the State of Wisconsin Investment Board reported exposure to spot Bitcoin ETFs issued by Grayscale and BlackRock. These investments totaled $164 million out of the board’s roughly $156 billion in assets. This 2% allocation serves as a model for Jersey City’s potential investment.
The SEC approved the listing and trading of spot Bitcoin ETFs on US exchanges in January. Among publicly-run pension funds, only those from Wisconsin and Jersey City are considering crypto ETFs. Mayor Fulop did not explicitly mention any plans to invest in spot Ether (ETH) ETFs, which started trading in the US on July 23.
Broader Financial Context
Major financial institutions like Wells Fargo and JPMorgan Chase have reported less than $1 million combined in spot Bitcoin ETF investments — a minuscule fraction of their trillions of dollars in assets. This highlights the cautious approach many traditional financial institutions are taking toward crypto investments.
Cointelegraph reached out to Mayor Fulop for comment but did not receive a response at the time of publication.
Implications and Future Outlook
Mayor Fulop’s initiative reflects a growing acceptance of cryptocurrency investments within traditional financial frameworks. As Jersey City potentially joins Wisconsin in integrating crypto ETFs into public pension funds, this could pave the way for other municipalities and states to follow suit. The inclusion of blockchain technology and cryptocurrencies in public investments signifies an important shift in how financial innovations are being perceived and adopted at the government level.
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