Bitcoin may soon become a part of state treasuries across the U.S. As many as 20 states are working on bills to add Bitcoin to their reserves, with some proposals already gaining momentum. If even a few of these bills pass, states could collectively buy up to $23 billion worth of Bitcoin, creating a massive wave of demand.
But that’s not all.
These moves could also encourage state pension funds to invest in BTC, putting even more pressure on supply. With Bitcoin already nearing a potential shortage, state-backed investments could set the stage for a major price surge.
So, which states are leading the charge, and how big could this get? Let’s take a closer look.
Interestingly, since President Trump proposed a national Bitcoin Reserve, several states have started working on their own. Matthew Sigel, Head of Digital Assets Research at VanEck, analyzed these state proposals and their potential impact.
“We reviewed 20 state-level Bitcoin reserve bills. If enacted, they could lead to 247,000 BTC in purchases, worth $23 billion. This figure doesn’t include pension fund investments, which could add even more demand,” Sigel noted.
The 20 states pushing for Bitcoin reserves include Oklahoma, Massachusetts, Wyoming, Ohio, Texas, Utah, North Dakota, Iowa, Illinois, Kentucky, Missouri, Maryland, New Mexico, South Dakota, Montana, New Hampshire, North Carolina, Arizona, Florida, and Pennsylvania. These proposals suggest using funds from state treasuries, stabilization reserves, and general funds to invest in Bitcoin.
Florida recently introduced a bill allowing the state to invest in Bitcoin and other cryptocurrencies. North Carolina proposed a similar bill for its State Treasurer, while Arizona’s Senate Finance Committee backed legislation enabling public funds to invest in Bitcoin. Meanwhile, Colorado, Utah, and Louisiana already accept crypto for state payments, and Detroit is set to become the largest U.S. city to do the same.
Several states are considering large Bitcoin investments. Arizona is looking at an $8.7 billion allocation, while Florida is planning to invest $3 billion. Missouri has introduced a bill that could direct over $1.7 billion into Bitcoin. However, not all states have shared their exact funding plans, making it difficult to estimate the full market impact.
Sigel noted that some states, such as North Dakota, have not disclosed their intended investment amounts, while others, like Pennsylvania, have already seen their proposals fail.
Sigel believes the $23 billion estimate might be too low. Since some states haven’t revealed how much they plan to invest, the actual total could be even larger. If these bills continue to gain support, they could significantly influence Bitcoin’s demand and price in the years ahead.
With Bitcoin’s supply already tightening, state-backed investments could be the spark that sets off the next big rally.
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