Lawmakers in Florida are looking to give the state a new kind of financial tool. A new proposal would allow pension funds and other public investment pools to put money into bitcoin and crypto exchange-traded funds. If passed, the state’s Chief Financial Officer and the State Board of Administration would be able to allocate up to 10 percent of these funds into digital assets. It’s a notable shift for a state that has typically stuck to traditional investment strategies.
Jimmy Patronis Makes the First Move
The push is being led by Jimmy Patronis, Florida’s CFO and Fire Marshal. He sent a formal request asking the State Board of Administration to take a serious look at bitcoin as part of the state’s investment portfolio. In his view, bitcoin has earned its place as “digital gold” and could offer long-term protection against market swings.
BREAKING: Florida just put $BTC Bitcoin on the table for its pension fund.
House Bill 183 would let the state invest up to 10% of public funds (including pensions) in crypto, ETFs, and tokenized assets. 🪙
Pension funds are no longer just observers — they’re becoming… pic.twitter.com/zVHbdCPX4Y
— Laissez-Faire Group (@LFgroup_) October 16, 2025
That request was sent to Chris Spencer, who heads the SBA as executive director and chief investment officer. The SBA is responsible for managing over $205 billion in assets, including the Florida Retirement System Trust Fund, one of the largest pension funds in the United States.
Inside the Bill and What It Would Change
The bill, which has been filed as House Bill 183 and may appear under other versions, outlines how crypto investments would be handled. Bitcoin and other digital assets would have to be held through proper custody channels, either directly or via SEC-registered ETFs. The legislation would also allow bitcoin to be lent out to generate additional income, provided risk is kept under control. The overall limit on these investments would be capped at 10 percent of any eligible fund.
The bill also includes a section on how taxes or fees paid in crypto would be handled. Those payments would be converted to U.S. dollars and sent to the General Revenue Fund, with credits issued to the appropriate accounts. If passed, the new law would go into effect on July 1, 2025.
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Florida Looks Around the Country for Context
Other states have already started testing crypto waters. Wisconsin’s State Investment Board disclosed that it had invested $164 million in spot bitcoin ETFs. That made up about 0.1 percent of its total assets. Meanwhile, Michigan’s retirement system reported that it bought 110,000 shares of a bitcoin ETF, amounting to just 0.003 percent of its total portfolio.
These examples show that while states are still cautious, they are no longer ignoring crypto altogether. Florida, with its much larger fund size, could end up pushing the boundaries further.
Weighing the Upside Against the Risks
Supporters believe that adding bitcoin could bring in strong returns and help diversify state investments. They say it’s a smart way to prepare for inflation and economic uncertainty. But others are concerned. Crypto still comes with serious risks, from sharp price drops to unclear regulations and complex storage requirements.
The SBA has a duty to protect pensions for state employees like teachers, police officers, and firefighters. Any misstep here could have real consequences, not just financially but politically too.
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The Road Ahead
If the bill gains traction, the next step could involve risk studies, pilot programs, and early test investments. One likely vehicle would be the Florida Growth Fund, which already has the flexibility to pursue more experimental strategies.
People across the country will be watching how Florida handles this. Whether the state becomes a leader in crypto-based investing or runs into trouble will depend on how carefully everything is managed. In the end, the question won’t just be whether Florida was bold enough. It will be whether it was prepared enough.
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Key Takeaways
- Florida lawmakers are considering a bill that would let pension funds and public investment pools allocate up to 10% of assets to bitcoin and crypto ETFs.
- The proposal is led by CFO Jimmy Patronis, who describes bitcoin as “digital gold” and sees it as a hedge against market volatility.
- House Bill 183 outlines custody rules, lending options, and a 10% cap, with the law potentially taking effect on July 1, 2025, if passed.
- Other states like Wisconsin and Michigan have made smaller bitcoin ETF allocations, but Florida’s $205 billion fund size could make its move more influential.
- Supporters see strong returns and diversification potential, while critics warn of volatility, unclear regulations, and risks to public pensions.
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