- A number of states have advocated for laws to create Bitcoin strategic reserves.
- This transition offers a hopeful perspective for the future of Bitcoin and its wider cryptocurrency landscape in the U.S.
As the federal government of the U.S. contemplates the establishment of Bitcoin strategic reserves, 21 states have already initiated the formation of their own reserves.
This is founded on recent analysis by VanEck, which examined various legislative proposals.
VanEck predicts that the total volume of Bitcoin acquired could reach $25 billion.
Analysts Nathan Frankovitz and Matthew Sigel remarked, “This amount is both hopeful and prudent.” While “the chances of these proposals being approved are slim,” and “our projections are based on the upper limits of each proposal,” certain suggestions do not clarify the potential volume of Bitcoin to be acquired, prompting VanEck to estimate zero for those instances.
Moreover, they pointed out that this compilation does not account for actions taken by states like Michigan and Wisconsin that are restricted to pension allocations.
Similar to Michael Saylor’s intense bidding via Strategy (totaling approximately $31 billion), state reserves could elevate Bitcoin prices to unprecedented levels.
This effort arises as the U.S. federal government deliberates whether to create its own reserves. Other nations may also pursue comparable initiatives.
Analysts from Galaxy Research stated in December, “Rivalry among countries, particularly those out of alignment, those with substantial sovereign wealth funds, and even those antagonistic to the U.S., will propel strategies to adopt or acquire Bitcoin through mining or alternative methods.”
The strategic asset reserves in the U.S. would enable states or the federal government to broaden their reserves beyond conventional U.S. Treasury assets.
If Bitcoin strategic reserves become standardized, they also possess the potential for geopolitical leadership.
Certain individuals hold the view that Bitcoin, which has a maximum supply of 21 million, can act as a safeguard against inflation. VanEck has identified 21 states along with their estimated investment figures and the associated Bitcoin amounts, arranged from the highest to the lowest investment:
– Arizona ($8.74 billion, 91,657 BTC)
– Florida ($3.02 billion, 31,694 BTC)
– North Carolina ($2.63 billion, 27,573 BTC)
– Pennsylvania ($2.36 billion, 24,736 BTC)
– New Mexico ($2.1 billion, 22,076 BTC)
– Missouri ($1.71 billion, 17,916 BTC)
– South Dakota ($1.67 billion, 17,492 BTC)
– Oklahoma ($1.47 billion, 15,379 BTC)
– West Virginia ($1.1 billion, 11,536 BTC)
– Massachusetts ($883.1 million, 9,262 BTC)
– Wyoming ($813 million, 8,526 BTC)
– Texas ($182.9 million, 1,918 BTC)
– Iowa ($273.6 million, 2,869 BTC)
– New Hampshire ($211.63 million, 2,220 BTC)
– Michigan ($398.26 million, 4,147 BTC)
– Montana ($50 million, 524 BTC)
– Illinois (data not available)
– Kentucky (data not available)
– Maryland (data not available)
– North Dakota (details not provided)
– Ohio (various proposals) Whats Fueling the Rise in XRP, LINK, BONK, Jasmy, and Other Altcoins?
*Andrew Flanagan serves as a market journalist for DL News. For suggestions, please reach out to [email protected].*
