US States Consider Bitcoin Reserves: A Potential $23 Billion Boost to BTC

A recent analysis by VanEck suggests that if 20 state-level Bitcoin reserve bills are enacted, it could lead to a significant increase in Bitcoin purchases, equivalent to $23 billion or 247,000 BTC. This estimate excludes potential pension fund allocations, which could further increase demand if lawmakers advance these proposals.

Matthew Sigel, VanEck’s head of digital asset research, highlighted the growing interest among US states in holding Bitcoin as a reserve asset. These bills, introduced in various legislatures, propose that states allocate a portion of their reserves to Bitcoin.

State Bitcoin Bills: A Growing Trend

As of February 2025, numerous US states are considering legislation to establish Bitcoin reserves. Notably, Utah has made significant progress, with its Bitcoin Reserve Bill passing the House Economic Development Committee on January 28, 2025, and currently awaiting Senate deliberation.

If approved, Utah could become the first state to implement such a reserve. Other states actively pursuing similar initiatives include Missouri, Arizona, Oklahoma, and Kentucky. Kentucky recently became the 16th state to introduce legislation for a Bitcoin reserve, joining others like Alabama, Florida, Massachusetts, Missouri, New Hampshire, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, Kansas, and Wyoming.

Potential Impact on Bitcoin’s Price

The projected $23 billion in buying pressure could add significant upward momentum to Bitcoin’s price, especially if pension funds and other state-managed investment vehicles also allocate to BTC. While no state has yet implemented such legislation, growing support among policymakers indicates that Bitcoin’s role in government reserves may expand.

Key takeaways from the analysis include:

  • Potential $23 billion in Bitcoin purchases if 20 state-level reserve bills are enacted.
  • Excludes potential pension fund allocations, which could further increase demand.
  • Utah’s Bitcoin Reserve Bill has made significant progress, with potential Senate deliberation.
  • 16 states have introduced legislation for a Bitcoin reserve, with more expected to follow.

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