by Mike Dalton at CryptoSlate
Marquette University professor emeritus David Krause told PBS Wisconsin on May 31 that other US states could follow Wisconsin in investing in spot Bitcoin ETFs.
Krause called Bitcoin a “good investment” for state pension funds, emphasizing its role in diversification, its high potential upside returns, and its use as a hedge against inflation. He added that Bitcoin’s ability to remove the volatility of government actions is underrecognized.
Despite his optimism, Krause clarified that only the State of Wisconsin Investment Board (SWIB) and some other state funds can afford to withstand crypto market cycles and volatility.
He said:
“I don’t expect those that are underfunded can afford to [invest] because this is a long play.”
Krauss did not predict which states are most likely to invest. However, data from Equable indicates that seven state pension funds had a funding ratio greater than or equal to Wisconsin’s 95% in 2023. Three of the seven funds had overfunded ratios above 100%.
Conversely, Illinois had the least funded state pension board, with a 51% funded ratio.