Crypto Currents: Pension funds debate bitcoin, Fed plans crypto conference

California’s massive $500B pension fund, CalPERS, debates its crypto exposure and the U.S. Federal Reserve plans a high-level conference on crypto and AI. Meanwhile, a crypto mining company linked to the Trump family made a volatile debut on the Nasdaq. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

CALIFORNIA $500B PENSION FUND DIVIDED ON BITCOIN: Candidates for the board of the California Public Employees’ Retirement System are split on whether to add bitcoin (BTC-USD) to the fund’s $506B portfolio. The debate comes even as CalPERS holds substantial indirect bitcoin exposure through its 410,596 shares in Strategy (MSTR), valued at $165.9M, according to its Q2 13-F filing. Opinions at a recent forum ranged from one candidate declaring “Hell no!” to crypto’s inclusion , to another who wouldn’t “close the door entirely on it”. Incumbent David Miller attacked challenger Dominick Bei over his crypto-focused nonprofit, stating “cryptocurrency should not have a seat on our board”. Bei countered by highlighting the fund’s existing holdings in Strategy, the world’s largest corporate holder of bitcoin.

U.S. FED TO HOST CONFERENCE ON CRYPTO AND AI: The Federal Reserve Board announced it will host a conference on payments innovation on October 21, focusing on emerging technologies like cryptocurrency and artificial intelligence. The event will cover topics including stablecoins, tokenized assets, and the use of AI for payments. Fed Governor Christopher J. Waller stated that “innovation has been a constant in payments to meet the changing needs of consumers and businesses”. The conference is seen as a sign that regulators are viewing digital assets as core components of the financial system, rather than “fringe experiments”.

TRUMP-LINKED AMERICAN BITCOIN DEBUTS ON NASDAQ: American Bitcoin (ABTC), a crypto mining firm backed by Eric Trump and Donald Trump Jr., completed a volatile first day of trading on the Nasdaq. The company went public after merging with Gryphon Digital Mining (GRYP). Shares surged as high as 91% before falling sharply, triggering five trading halts throughout the day due to volatility. The stock ultimately finished the session up 16.52%. In an interview with Bloomberg, Eric Trump, the company’s co-founder, said the firm will both mine and purchase bitcoin, depending on which strategy is better for shareholder value at the time.

BITCOIN ETFS SEE LARGEST INFLOWS SINCE AUGUST: According to data from Farside Investors, U.S. spot bitcoin ETFs recorded their strongest two-day performance since early August, with consecutive daily inflows exceeding $300M for a total of $633.3M. BlackRock’s (BLK) IBIT led Wednesday with $289.8M in inflows, while Fidelity’s FBTC led on Tuesday with $132.7M. However, in a comment to Decrypt from Dean Chen, an analyst at Bitunix, he characterized the activity as “concentrated dip-buying” rather than a definitive trend reversal. To confirm a market reversal, analysts say they would need to see “several consecutive days, if not weeks, of sustained inflows”.

SOLANA EYES BREAKOUT ON UPGRADE AND ETF HOPES: According to a market analysis from crypto.news, solana (SOL-USD) is trading around the $206 level as investors monitor the rollout of its “Alpenglow” network upgrade and await a regulatory decision on a potential spot ETF. The upgrade, which has been approved by 98% of validators, aims to slash transaction confirmation times to approximately 150 milliseconds. While optimism for an ETF product persists, the SEC recently delayed its decision on solana ETF applications until mid-October. The token is currently in a consolidation phase, with key support around $200 and resistance near $215-$220.

PRICE ACTION: As of time of writing, bitcoin (BTC-USD) was trading at $109,818.59, while ethereum (ETH-USD) was trading at $4,339.37. and solana (SOL-USD) was at $205.06, according to price data from CoinDesk.