North Carolina Eyes Bitcoin ETPs: A New Era for State Investments

North Carolina's House Speaker, Destin Hall, has introduced a bill (HB 92) that, if passed, would allow the state treasurer to invest public funds in digital assets, specifically exchange-traded products (ETPs) with a minimum market capitalization of $750 billion over the previous 12 months. This would effectively limit the investment to Bitcoin (BTC) ETPs, given the current market conditions.

The "NC Digital Assets Investments Act" aims to diversify the state's investment portfolio by including digital assets. The bill sets a limit of 10% of any state fund's balance at the time of investment. Hall, who co-sponsored the bill, believes that investing in digital assets like Bitcoin has the potential to generate positive yields for the state's investment fund and positions North Carolina as a leader in technological adoption and innovation.

Legislators and bill sponsors cited several reasons for investing in crypto assets, including US dollar inflation and devaluation, and the potential returns from state funds such as teachers' and state employees' pensions, insurance funds, and veterans' funds. Mike Schietzelt, a bill co-sponsor, stated that blockchain technology, decentralized finance, and other innovations in the crypto space will shape the future and that North Carolina is poised to capitalize on these emerging opportunities.

The number of US states proposing crypto investment legislation is increasing rapidly. As of now, 19 states have proposed a bill, with Arizona and Utah advancing legislation beyond the House committee level. Meanwhile, North Dakota has rejected legislation regarding crypto investments. Montana lawmakers have also introduced an act (HB 429) to create a "state special revenue account" for investing in digital assets and precious metals.