Bitcoin Boom: States Eye Crypto Investments Amidst Regulatory Shifts

The bitcoin-friendly administration of President-elect Trump might encourage state treasuries and public pension funds to invest in crypto. While enthusiasts see it as a hedge against inflation, critics warn of its volatility. Some states have started investing, but larger adoption remains cautious.

Amid growing interest in bitcoin, the administration of President-elect Donald Trump is creating a climate where state treasuries and public pension funds could increase crypto investments. Enthusiasts tout bitcoin as a hedge against inflation while critics caution about its volatility.

The 2024 milestone of bitcoin surpassing $100,000 marks an era where the US Securities and Exchange Commission has sanctioned exchange-traded funds holding bitcoin. Despite some states investing in crypto, public pension funds are hesitant due to the unpredictability of returns.

Legislation supportive of crypto is expected, with proposals like Sen. Cynthia Lummis's federal bitcoin reserve. Public pension investment professionals remain cautious, tracking developments and exploring risks versus rewards in this volatile market.

(With inputs from agencies.)