As several U.S. states are considering using public funds to invest in Bit, asset management firm VanEck expects that if these state-level Bit reserve bills are passed, it could bring up to $23 billion in inflows to the market. Additionally, former President Trump is also pushing for a federal-level digital asset regulatory framework, and is even considering establishing a "National Digital Asset Reserve".
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ToggleMultiple states push Bit reserve plans, totaling up to $23 billion
As the discussion of establishing a national-level digital asset reserve heats up, representatives from several states, including Texas, Pennsylvania, and Ohio, have proposed using public pension funds to invest in Bit, or directly establishing state-level Bit reserves.
We analyzed 20 state-level Bit 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. pic.twitter.com/5AZnkiwTZf— matthew sigel, recovering CFA (@matthew_sigel) February 12, 2025
Matthew Sigel, VanEck's head of digital assets, stated that the company has analyzed 20 state-level Bit reserve bills and estimates that if these bills are passed, they could drive a strong buying demand of around 242,700 Bit, equivalent to $23 billion:
Due to the still unclear investment scales of many states, and the fact that this table does not yet include pension fund allocations, the $23 billion figure is currently a conservative estimate.
Uneven legislative progress across states, but a consistent direction
Currently, the attitudes of various U.S. states towards investing in Bit are different, and the Bit assets they intend to invest in are also different, but the only consistent thing is: the overall legislative progress is accelerating.
It is reported that states including Colorado, Utah, and Louisiana have accepted Bit as a payment method for state government. And last November, the city of Detroit even announced that it will launch a state resident Bit payment platform, with the aim of becoming "the largest city in the U.S. to accept Bit payments":
The service is expected to be launched in mid-2025, at which point residents will be able to use Bit to pay taxes and other city fees through a secure platform managed by PayPal.
Sigel had previously stated that BTC is the only Bit suitable for the U.S. government's reserve, as it has a fundamental difference from all other digital assets.
VanEck simulates a national Bit reserve plan, which could offset $42 trillion in national debt
Last December, the VanEck research team forecasted based on the 2024 Bit Act (BITCOIN Act 2024) proposed by Senator Cynthia Lummis that if the U.S. government implements this plan, the national reserve will reach 1 million BTC by 2029, and by 2049, this reserve could offset about 35% of the national debt, equivalent to $42 trillion.
However, this result is still a bit far-fetched, as it requires BTC to appreciate over 43,000% in the next 24 years, reaching $4.23 million, not to mention the annual growth rate of U.S. national debt.
Countries are all crazy about Bit reserves
It is worth mentioning that at the global level, recently from Bhutan, Switzerland to Czech Republic, they have all revealed an intention to provide tax incentives to Bit holders, or are considering including Bit in their reserves.
Even White House Bit czar David Sacks has stated that Bit, as the earliest and most powerful Bit, is an "excellent store of value".
Risk Warning
Bit investment is highly risky, and its price may fluctuate violently, and you may lose your entire principal. Please carefully evaluate the risks.
