TL;DR
- Louisiana’s pension fund bought $3.2M in shares of Bitcoin company Strategy.
- The investment provides indirect exposure to Bitcoin without direct ownership.
- This follows a trend of U.S. state pension funds cautiously entering crypto.
The Louisiana State Employees’ Retirement System (LASERS) has expanded its portfolio with indirect exposure to Bitcoin through the acquisition of 17,900 shares in the Bitcoin treasury company Strategy. The purchase, valued at roughly $3.2 million, comes from LASERS’ $15.6 billion total holdings, marking another example of U.S. state-level funds engaging with digital assets.
By investing in Strategy, LASERS gains a proxy for Bitcoin’s market movements without directly holding the cryptocurrency. This approach aligns with a broader pattern among pension funds, which often prioritize indirect exposure through ETFs or crypto-adjacent stocks to manage volatility while fulfilling fiduciary duties.
The Louisiana fund follows peers such as the New York State Common Retirement Fund, California State Teachers’ Retirement System, and Florida Retirement System, all of which hold $MSTR stock as part of their crypto-linked allocations.
State pension adoption of crypto expands
The LASERS allocation reflects the increasing trend of state-level funds entering crypto markets, signaling cautious institutional acceptance of Bitcoin. While $3.2 million represents a modest position within the fund’s broader portfolio, it demonstrates the growing willingness of public funds to engage with digital assets in a controlled, risk-managed manner.
Direct Bitcoin purchases remain rare among pension funds due to regulatory constraints and volatility concerns. Exceptions exist, such as the Houston Firefighters Relief and Retirement Fund (HFRR), which in 2021 made a $25 million direct investment in Bitcoin when prices hovered near $65,000. Since then, Bitcoin has surpassed $90,000, allowing HFRR to outperform many comparable funds in the same category.
Other pension funds with direct crypto exposure, including Michigan and Jersey City treasuries, typically favor ETFs over outright Bitcoin ownership. For LASERS, acquiring shares in Strategy represents a compromise between gaining access to Bitcoin’s potential returns and maintaining the fiduciary responsibility to protect long-term retirement assets.
Industry analysts note that these movements indicate a growing recognition of Bitcoin as a treasury asset, even for government-affiliated funds. The approach allows exposure to the cryptocurrency’s upside while limiting the operational complexities and security risks of holding BTC directly.
The Louisiana investment follows similar actions by other states, including Texas, which has purchased Bitcoin directly for its treasury, highlighting a gradual but persistent adoption of crypto at the state level. By participating in this market indirectly, LASERS joins a broader cohort of U.S. public funds exploring digital assets while adhering to prudent investment guidelines.
