Key Points
- Twenty U.S. state-led Bitcoin Reserve bills could generate over $23B demand for Bitcoin.
- Utah and Arizona are leading the race, with their bills progressing to the next stages.
Mathew Sigel, the Head of Research at VanEck, has suggested that the approval of 20 state-led Bitcoin Reserve bills in the U.S. could generate a demand exceeding $23 billion for Bitcoin (BTC).
This projection does not include potential allocations from pension funds, which are likely to increase if legislators continue to move forward with these bills.
Uncapped Bitcoin Allocation
Some states have set a limit on the fund allocation for Bitcoin between 1%-10%, while others have no set maximum. Pierre Rochard, the Vice President of Research at BTC miner Riot Platforms, has highlighted that Texas’ bill has no cap on the Bitcoin allocation amount.
This could potentially lead to a demand that surpasses VanEck’s $23 billion estimate. Andre Dragosch, Bitwise Europe’s Head of Research, has noted that this demand could be 2.5 times the annual Bitcoin supply.
Progress of State Bills
Among the states, Utah and Arizona are leading the way. Their bills have advanced to the second reading and first chambers, respectively. However, three state bills, including Wyoming’s, have not made progress.
It is yet to be determined whether Utah will be the first state to legally establish a Bitcoin Reserve. The potential impact on Bitcoin’s demand dynamics remains uncertain.