All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- U.S. states could invest up to $23B in Bitcoin reserves, potentially acquiring 247,000 BTC.
- Rising institutional demand and limited Bitcoin supply could trigger a major price surge.
Following VanEck’s late-2024 prediction, the crypto bull market is expected to peak in early 2025, according to a CNF report. A recent VanEck study suggests that U.S. states could collectively invest up to $23 billion in Bitcoin, potentially acquiring around 247,000 BTC if proposed Bitcoin reserve bills move forward.
The research, led by Matthew Sigel, head of digital assets research at VanEck, examines legislative efforts across 17 states aiming to establish Bitcoin reserves. In a recent tweet, Sigel emphasized:
We analyzed 20 state-level Bitcoin reserve bills. If enacted, they could drive $23 billion in buying, or 247k BTC. This sum is independent of any pension fund allocations, likely to rise if legislators move forward.
US States Exploring Bitcoin Reserves
According to VanEck’s report, 17 U.S. states have introduced bills seeking to acquire and hold Bitcoin within state reserves or pension funds. However, one such bill in Wyoming failed to pass, leaving 16 states still pursuing the initiative. Among them, Massachusetts, North Dakota, Iowa, and North Carolina have recently introduced legislation or are awaiting deliberation.
Meanwhile, states such as Texas, Ohio, Utah, Oklahoma, and Illinois have seen their bills progress to committee hearings, with Utah being the only one to secure a favorable vote.
Unlike previous sentiment, a breakdown of estimated Bitcoin allocations by state suggests that if all proposed bills succeed, these states could amass a combined 242,787 BTC, surpassing the U.S. government’s current Bitcoin holdings of 198,109 BTC.
Notably, these projections exclude potential Bitcoin acquisitions by U.S.-based pension funds, which could further amplify institutional investment in Bitcoin.
Bitcoin Supply Shock on the Horizon
With institutional interest in Bitcoin surging, analysts warn of an impending supply shock. Bitcoin’s capped supply and increasing demand—driven by spot ETFs, institutional acquisitions, and corporate buyers like MicroStrategy—are already stretching availability.
Recent data from Bitwise reveals that 69.4% of Bitcoin in circulation is held by individuals, leaving limited opportunities for governments and institutions to acquire large amounts.
Additionally, the reports suggest that only around 140,000 BTC remain available on over-the-counter (OTC) trading desks, further constraining supply. If U.S. states proceed with their planned Bitcoin purchases, Bitcoin’s scarcity could drive prices significantly higher, making institutional accumulation even more competitive in the coming years.
At the time of writing, Bitcoin (BTC) is trading at $96,378, reflecting a 0.80% increase in the past day after a 0.86% decline in the past week. See BTC price chart below.
