Under the bill, KPERS will be able to allocate up to 10% of its funds to investment products tied to Bitcoin, along with traditional investments in stocks, bonds and real estate. This will allow KPERS to diversify its investment portfolio, the senator is sure. However, a pension fund must select ETFs only from publicly traded investment companies that are registered in Kansas and trade on U.S.-regulated exchanges.
The investment activities of KPERS will be governed by a Board of Trustees appointed by the Governor, legislators and elected members of KPERS. The Board will ensure that all investments made by the pension fund are made solely for the benefit of members and beneficiaries.
Therefore, the Council will decide to sell Bitcoin-related products if their value exceeds 10% of the fund. In addition, the Council will evaluate the performance of investments in cryptocurrency ETFs and conduct an annual analysis of their compliance with the objectives of the fund, and then send a report to the governor of the state.
The bill is pending in the Committee on Financial Institutions and Insurance. Before the bill receives the governor’s signature, it must pass both houses of the Kansas Legislature and also receive approval from the Kansas House of Representatives.
In October, Florida Finance Commissioner Jimmy Patronis asked local officials to allow pension funds to invest in Bitcoin to protect funds from the volatility of traditional assets. In July, a pension fund from the American city of Jersey City also applied to the US Securities and Exchange Commission (SEC) for permission to invest in spot Bitcoin ETFs.
Source: Bits
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