Bitcoin's Mainstream Moment: $23 Billion in Potential State Purchases
1min read State reserve bills could drive significant demand for Bitcoin, with an estimated $23 billion in potential purchases, according to an analysis by asset manager VanEck. The firm examined 20 state-level Bitcoin reserve bills and found that if enacted, they would require state governments to collectively buy approximately 247,000 BTC. This figure does not include potential BTC purchases by state pension funds, which could further boost demand.
VanEck's head of research, Matthew Sigel, noted that the $23 billion estimate is potentially conservative due to the lack of details in many of the proposed bills. The growing institutional and government adoption of Bitcoin is contributing to its increasing mainstream status as a reserve asset. In addition to state governments, the US President has ordered staff to explore the possibility of a national strategic Bitcoin reserve.
More than 150 companies are accumulating Bitcoin treasuries, citing its perceived utility as an inflation hedge. In February, the US President ordered the creation of a sovereign wealth fund, which industry analysts speculate could serve as a vehicle for the US government to buy BTC. The New York Post reported that Trump is receptive to expanding a possible reserve to include a broader basket of cryptocurrencies.
Prediction market Kalshi assigns a 52% probability that Trump will follow through on creating a national Bitcoin reserve this year. Establishing BTC reserves in the US would accelerate Bitcoin's adoption even more than the anticipated exchange-traded fund (ETF) launches in 2024, according to cryptocurrency researcher CoinShares.
