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Asset manager VanEck reported that U.S. state proposals to establish bitcoin reserves could potentially inject $23 billion into the cryptocurrency market.
This surge is expected from the enactment of 20 state-level bitcoin reserve bills that VanEck has analyzed, which could translate into the purchase of approximately 242,700 bitcoins. The firm’s head of digital assets, Matthew Sigel, suggests that this figure might be on the conservative side, as many states have not yet disclosed the size of their proposed investments.
These legislative efforts come alongside initiatives in several states to utilize public funds for cryptocurrency investments. Last week, Florida introduced a bill to allow the state to invest in bitcoin and other cryptocurrencies.
Similarly, North Carolina is considering a proposal that would permit the State Treasurer to invest in "qualifying digital assets." Arizona has also made progress, with the Senate Finance Committee voting in favor of a bill for public funds to invest in bitcoin, which now awaits further consideration in the Senate Rules Committee.
The movement towards integrating cryptocurrencies into state finances is gaining momentum, as Colorado, Utah, and Louisiana already accept crypto for state payments. Detroit announced plans last November to become the "largest U.S. city" to accept cryptocurrency payments.
On the federal front, President Donald Trump has initiated the development of a comprehensive regulatory framework for digital assets, including stablecoins, and is contemplating the establishment of a national digital assets stockpile. David Sacks, the White House crypto czar, endorsed bitcoin as an "excellent store of value."
VanEck’s analysis also extends to federal policy, referencing the BITCOIN Act of 2024, which suggests the U.S. Treasury could amass 1 million BTC over five years.
If the U.S. adheres to this ambitious plan, VanEck projects that by 2049, the reserve could equate to roughly 35% of the national debt, potentially neutralizing about $42 trillion in liabilities.
This scenario assumes a significant appreciation in bitcoin’s value, with an estimated increase of over 43,000% in the next 24 years, alongside a compound annual growth rate of 25% from a starting value of $200,000 per bitcoin.
The firm’s December research posits that the optimistic outlook is based on a comparison of U.S. debt compounding at 5.0% from a 2025 base of $37 trillion against the projected exponential growth of bitcoin.
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