Risky business? Fulop adding Bitcoin ETFs to Jersey City pension fund portfolio

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Two professors agree that investing in crypto is risky, but Professor John Donnellan believes the investment is 'less risky' and 'smart' with an Exchange-traded fund.

Mayor Steve Fulop posted the city is working on investing a percentage of the city's pension fund in a Bitcoin ETF.Jersey City is aiming to cash in on the “risky” and “speculative” cryptocurrency market by investing a piece of the city’s pension fund.

An ETF allows investors to put their money in a managed fund that invests in numerous securities like stocks and bonds. It saves the investor time from looking into singular stocks or bonds. The move follows the state of Wisconsin, which invested 2% of its state pension fund in a Bitcoin ETF. Two professors told The Jersey Journal investing in the crypto market is risky, since its worth is based on what another person is willing to pay. Crypto is not like purchasing stock in Verizon, a telecommunication company with a revenue stream and a customer base that determines its worth.

John Donnellan, a global business professor and chairman of the Management Department inside New Jersey City University’s School of Business, says the mayor has diminished risk to the city by investing in an ETF, which is regulated.

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