U.S. States Push for Bitcoin Reserves, Driving Institutional Adoption

Institutional adoption of Bitcoin (BTC) could surge as 20 U.S. states advance legislation to establish Bitcoin reserves. If enacted, these proposals could lead to the purchase of approximately 247,000 BTC, valued at around $23 billion.

Matthew Sigel, Head of Digital Assets Research at VanEck, emphasized the potential impact if these bills pass. States are at different legislative stages, with some in the introduction phase while others, like Utah, have advanced to the second committee for review.

Many states are considering allocating 10% of their funds to Bitcoin, with North Carolina and New Mexico leading potential investments at $2.6 billion and $2.1 billion, respectively. This would translate to 27,118 BTC for North Carolina and 21,711 BTC for New Mexico.

Additionally, state pension funds could further boost Bitcoin demand. New Mexico, for instance, aims to utilize funds from sources like the Land Grant Permanent Fund and Tobacco Settlement Permanent Fund.

If these proposals gain approval, a wave of institutional capital could enter the Bitcoin market, potentially influencing its price trajectory. Traders and investors are closely watching legislative developments, anticipating their impact on Bitcoin’s long-term adoption and valuation.