BTC Reserves in U.S. States May Attract $23 Billion in Demand
The reserve bill in Utah has made significant progress, with the rest following suit in states such as Arizona.
As the market awaits the feasibility of a national Bitcoin (BTC) reserve in the United States, similar efforts led by state leaders are gaining momentum.
Mathew Sigel, Head of Research at Vaneck, predicts that if approved, the BTC reserve bills led by 20 U.S. states could generate a demand of over $23 billion in King Coin. Sigel states, “If enacted, they could drive $23 billion in purchases or 247,000 BTC. This amount is separate from any pension fund allocation and could increase if lawmakers move forward.”
Is the BTC supply shock on the horizon?
While some allocate funds between 1% and 10%, some states have no limits.
Pierre Rochard, Vice President of Research at BTC Miner Riot Platforms, says that the bill in Texas does not restrict the amount of BTC allocation.
He states, “The new legislative text for the Texas Strategic Bitcoin Reserve Zone SB 21 looks very promising! It eliminates the $500 million annual purchase limit; lawmakers can save BTC as they please.”
In short, the demand may surpass Vaneck’s estimated $23 billion.
In the same vein, Andre Dragosch, Research Director based in Europe, highlights that the demand could be 2.5 times the annual BTC supply.
“Thus, more than 20 U.S. states may have already bought as much Bitcoin as the federal government. In combination, they have absorbed 2.5 times the new Bitcoin supply.”
It is worth noting that the bills in Utah and Arizona have led the rest after their second reading and first hearing. However, three states, including Wyoming, have failed to make progress on their bills.
Whether Utah will be the first state to legally establish a BTC reserve remains to be seen. The impact of the dynamic BTC demand is still uncertain.
