20 States in the U.S. Introduce Bills for Bitcoin Reserves, Expected Demand Reaches $23 Billion – Read on for More Information
While the crypto market eagerly anticipates the possibility of a national Bitcoin (BTC) Reserve in the U.S. from President Donald Trump’s digital asset working group, a wave of similar initiatives at the state level is gaining momentum.
Matthew Sigel, who serves as the Head of Research at VanEck, has forecasted that if approved, the introduction of Bitcoin Reserve bills by 20 U.S. states could lead to a demand exceeding $23 billion for the flagship cryptocurrency. Sigel expressed,
“Should these bills become law, they could trigger a buying spree totaling $23 billion, equivalent to 247,000 BTC. This projection does not even factor in potential allocations from pension funds, which could further boost the figures.”
Are we heading towards a Bitcoin supply shortage?
While some states have set limits on the allocation percentage, others have chosen not to impose any restrictions.
Pierre Rochard, the VP of Research at mine operator Riot Blockchain, revealed that the Bitcoin allocation specified in Texas’ proposed bill is devoid of any cap.
He explained,
“The details of the Texas Strategic Bitcoin Reserve outlined in SB 21 are quite optimistic! By eliminating the $500 million yearly purchasing cap, the legislation grants the authority to allocate as much funds as necessary for Bitcoin acquisitions.”
It seems plausible that the actual demand could exceed the initially projected $23 billion by VanEck.
Adding to the discourse, Andre Dragosch, who holds the position of Head of Research at Bitwise Europe, mentioned that the accumulated demand might surpass 2.5 times the annual Bitcoin supply.
“In essence, these 20+ U.S. states could end up procuring a volume of bitcoins almost equivalent to that amassed by the federal administration. Therefore, collectively, they would absorb approximately 2.5 times the yearly influx of new bitcoins.”
Presently, Utah and Arizona are leading the pack, with respective bills advancing to the second reading and initial legislative houses. Yet, three state bills, including the one in Wyoming, have not advanced further.
It remains unclear whether Utah will succeed in becoming the first state to officially establish a Bitcoin Reserve. The repercussions on Bitcoin demand dynamics remain ambiguous and await further developments.