Bitcoin News Today: Brazil Considers 5% Bitcoin Allocation in Central Bank Reserves

Brazil is moving closer to potentially joining a growing list of nations exploring the use of Bitcoin as part of its official reserves. On August 20, the country’s House of Representatives is scheduled to hold a public hearing on a proposed bill that would allow up to 5% of the Central Bank’s $300 billion international reserve—approximately $15 billion—to be allocated to Bitcoin [1]. The initiative, first introduced in November 2024, aims to shield Brazil’s foreign exchange holdings from volatility and geopolitical instability while simultaneously fostering blockchain innovation in both public and private sectors.

The hearing is expected to include representatives from major institutions such as the Central Bank of Brazil, the Ministry of Finance, fintech firms, traditional banking interests, and crypto advocacy groups. While the proposal has sparked debate, high-profile figures have taken clear stances. Pedro Giocondo Guerra, chief of staff to Vice President Geraldo Alckmin, has publicly endorsed the plan, calling Bitcoin “digital gold” and emphasizing its potential to enhance Brazil’s long-term economic resilience [1]. However, skeptics like Nilton David, Brazil’s central bank director of monetary policy, argue that including crypto in the country’s reserves is inappropriate [1].

This development aligns with a global trend initiated by U.S. President Donald Trump’s March executive order to create a national strategic Bitcoin reserve. Countries such as Kazakhstan have since revealed similar plans, while others like India and Sweden are rumored to be considering them. The U.S., China, the U.K., Ukraine, Bhutan, and El Salvador are among the largest holders of Bitcoin at present [1].

Institutional adoption of Bitcoin is also gaining momentum beyond national strategies. In the U.S., public pension funds are increasingly allocating capital to the cryptocurrency. For instance, Michigan’s State Retirement System has significantly increased its exposure to Bitcoin through the ARK 21Shares Bitcoin ETF (ARKB). Regulatory filings with the U.S. Securities and Exchange Commission (SEC) show the fund owned 300,000 shares of ARKB by the end of Q2 2025, a jump from 110,000 shares in the previous year. At press time, these shares were valued at approximately $11.3 million [1].

In addition to Bitcoin, the fund also holds 460,000 shares of the Grayscale Ethereum Trust (ETHE), valued at around $9.6 million, indicating a long-term confidence in Ethereum [1]. Wisconsin has also made a significant investment in Bitcoin, committing $321 million through BlackRock’s iShares Bitcoin Trust and Grayscale’s GBT [1].

The increasing institutional interest in Bitcoin and Ethereum is evident in the strong performance of ETFs. In mid-July 2025, Bitcoin ETFs experienced over $1 billion in net inflows on two consecutive days, contributing to Bitcoin’s all-time high above $123,000 [1]. Ethereum ETFs have also gained traction, with BlackRock’s iShares Ethereum ETF becoming the third-fastest fund to surpass $10 billion in assets under management. On-chain data from Dune Analytics shows that Ethereum ETF holdings surged by more than 40% in the past month alone, driving the price of Ether to above $3,800 in July [1].

Source: [1] Brazil Weighs National Bitcoin Reserve Proposal (https://coinpaper.com/10372/brazil-weighs-national-bitcoin-reserve-proposal)