The U.S. state of Arizona has joined a number of states supporting Bitcoin by adopting the asset class. The state Senate has proposed a resolution to consider the recently approved Bitcoin ETFs as a potential investment vehicle for the state’s pension system.
Arizona has already proven that it is open to technological advances. In January 2023, it introduced a bill that would allow the state to receive tax payments in cryptocurrencies.
Under the latest bill, the Arizona State Retirement System (ASRS) and the Public Safety Personnel Retirement System (PSPRS) are seeking to add exposure to Bitcoin ETFs to their portfolios .
Bitcoin ETFs a safe haven
According to Dennis Porter, CEO of Satoshi Action Fund, the resolution will be a “strategic effort to increase portfolio diversification and reduce investment risk.”
“In considering bitcoin ETFs, Arizona wants to capitalize on the inherent value and potential stability offered by bitcoin, much like traditional safe haven investments such as gold.”
In addition, he said the addition of Bitcoin ETFs could significantly reduce risk in an asset portfolio, challenging skepticism about Bitcoin.
Porter said: “We believe that adding even a small number of Bitcoin ETFs can dramatically reduce the risk of an asset portfolio. Arizona is just the beginning of the process. You’ll soon see more announcements regarding the BTC ETF Resolution, and more states are coming as well.”
Because cryptocurrencies have inherent volatility, they are a fascinating tool for diversification due to their decentralized nature and potential for high returns.
Bitcoin-backed exchange traded funds also offer incredible retirement planning benefits. It provides a balanced approach that uses both digital and traditional assets to contribute to a portfolio’s overall risk balance.
