Bitcoin ETFs and the pension system US

[zasad@]

There is a lot of money in the US pension system


https://cointelegraph.com/news/arizona-senate-consider-bitcoin-etfs-retirement-portfolios
"The Arizona State Senate is considering a proposal to encourage the inclusion of Bitcoin exchange-traded funds (ETFs) in two of the state’s retirement portfolios.

The resolution is currently being reviewed by the House for a second time after it passed the Senate’s Third Reading in a 16–13 vote on Feb. 22, records show.

If passed, the proposal would encourage the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) to consider adding exposure to Bitcoin ETFs in their respective portfolios, according to state records."
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If the pension system buys Bitcoin ETFs above $70,000, then this market could still grow well.

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[bitmover]

There is a lot of money in the US pension system

Certainly there is a lot.

If 0.1% of that 55 trillions comes to bitcoin ETF, that is already millions of dollars.

The problem is that the high volatility is not good pension funds.... the downs (which may reach 50-60% in a year) may cause big discussions among the pensioners...

[HeRetiK]

Certainly there is a lot.

If 0.1% of that 55 trillions comes to bitcoin ETF, that is already millions of dollars.

The problem is that the high volatility is not good pension funds.... the downs (which may reach 50-60% in a year) may cause big discussions among the pensioners...

You mean kinda like what happened to the UK pension funds during the bonds crash? While i don't expect anything like this happening anytime soon, it seems almost negligent to not have at least a little exposure to Bitcoin at this point. And if Bitcoin would make only like, say 1% of a pension fund, a temporary down of 50-60% would be negligible.

[yhiaali3]

What I liked about studying:

“By considering Bitcoin ETFs, Arizona is looking to leverage the inherent value and potential stability offered by Bitcoin, akin to traditional safe-haven investments like gold,” he explained in a March 6 X post.

Considering Bitcoin like traditional safe haven investments like gold, this in itself is a major achievement for Bitcoin, and this is one of the positive effects of Spot Bitcoin ETF approval.

I do not know if this study has been approved and turned into law. Will this become effective in all American states or will it be specific to the state of Arizona only?

[Poker Player]

Certainly there is a lot.

If 0.1% of that 55 trillions comes to bitcoin ETF, that is already millions of dollars.

The problem is that the high volatility is not good pension funds.... the downs (which may reach 50-60% in a year) may cause big discussions among the pensioners...

Well, but within the many types of pensions there is room for it. There are pension funds by expected retirement age, and for those who are going to retire in 20 years, for example, it has a place in the mix. Traditionally for people nearing retirement they held more potentially volatile assets, such as stocks, and as retirement age approached they increased the percentage of safer assets, such as bonds. It's just a matter of getting Bitcoin into the volatile asset mix. Even pension funds that are not governed by an expected retirement age for their participants have a place in small amounts.

[zasad@]

There is a lot of money in the US pension system

Certainly there is a lot.

If 0.1% of that 55 trillions comes to bitcoin ETF, that is already millions of dollars.

The problem is that the high volatility is not good pension funds.... the downs (which may reach 50-60% in a year) may cause big discussions among the pensioners...

When Bitcoin was worth 20 thousand dollars or cheaper, pension funds were not able to buy Bitcoin. Bitcoin has a "mining cost" and if I ran a large pension fund, I would buy a Bitcoin ETF when the market supply is below the "mining cost".

[blckhawk]

You mean kinda like what happened to the UK pension funds during the bonds crash? While i don't expect anything like this happening anytime soon, it seems almost negligent to not have at least a little exposure to Bitcoin at this point. And if Bitcoin would make only like, say 1% of a pension fund, a temporary down of 50-60% would be negligible.

The problem is that as much as we consider it negligible, bitcoin doesn't go down at just 50-60% and there's bound to be some people that are pensioners that would be unlucky enough to get their pension coinciding with the prices going down and they're not going to be waiting for their pensions to go back up in 2 or 3 years before they can get back to a stable point where they can get their pensions without getting any losses. Maybe the 1% could work but I know how the system works in a lot of countries, they don't take risks without a payoff on their side, even though the system is so full of bureaucracy and paper works, the system tries its best to make sure that the thing that they're going to implement would fit their agenda and even though this might get accepted I still think that the pensioners are probably not going to like that anyway.