Kansas proposes 10% allocation of retirement funds to Bitcoin ETFs

Kansas State Senator Craig Bowser has introduced a bill that could allow up to 10% of public employee retirement funds to be invested in spot Bitcoin (CRYPTO:BTC) exchange-traded funds (ETFs).

Senate Bill 34 aims to authorise the Kansas Public Employees Retirement System (KPERS) to allocate a portion of its retirement assets into Bitcoin-backed ETFs.

The proposed legislation includes the establishment of a board of trustees responsible for overseeing these investments.

According to the bill, the board may invest and reinvest funds in Bitcoin exchange-traded products issued by investment companies registered in Kansas.

Importantly, if the value of Bitcoin ETFs exceeds the 10% threshold, the board would not be required to sell unless it is deemed beneficial for the fund’s beneficiaries.

Additionally, the board is mandated to conduct an annual review of the investment program to evaluate performance and ensure accountability.

This initiative marks a notable shift in Kansas lawmakers' attitudes towards cryptocurrency investments, contrasting with previous efforts to limit political donations made in digital assets.

Introduced on January 16, the bill has been referred to the Committee on Financial Institutions and Insurance for further consideration.

It must navigate several legislative steps before potentially reaching the House of Representatives and, ultimately, the governor for final approval.

If successful, this bill could position Kansas as a leader in integrating cryptocurrency into traditional investment frameworks.

At the time of reporting, the Bitcoin (BTC) price was $103,509.