- 16 US states have active bills proposing Bitcoin reserves, totaling an estimated 247,000 BTC.
- Utah is the only state that has advanced its bill after a favorable vote.
- Institutional Bitcoin demand may lead to a supply shock, limiting future availability.
A recent report from VanEck highlights that US states could purchase up to 247,000 BTC. Seventeen states introduced bills to buy Bitcoin, but one failed. Wyoming’s proposal did not get enough votes, leaving 16 states with active legislation.
Some states, including North Carolina, Massachusetts, and Iowa, recently proposed their bills. Others, such as Texas, Oklahoma, and Utah, have progressed to committee hearings. Utah’s bill has advanced further after receiving a favorable vote.
Potential Bitcoin Allocations
VanEck analyzed how much Bitcoin each state could purchase. Their estimates considered proposed reserve funds and Bitcoin allocation percentages. The total amount of Bitcoin these states could buy is 242,787 BTC, worth around $23.54 billion.
This potential purchase surpasses the US government’s Bitcoin holdings of 198,109 BTC. Additionally, the estimate does not account for pension funds, which may also invest in Bitcoin if these bills pass.
Bitcoin’s Scarcity and Institutional Demand
Institutional Bitcoin acquisitions are rising, causing concerns about limited supply. Bitcoin’s total supply is capped at 21 million, making it increasingly scarce. The rising demand from ETFs and large investors could cause a supply shock.
Data from Bitwise indicates that 69.4% of Bitcoin in circulation is held by individuals. Governments and institutions must wait for them to sell or compete in the open market. As demand increases, Bitcoin’s price could see significant upward pressure.
A Future of Institutional Bitcoin Accumulation
The US states considering Bitcoin reserves may influence other governments to do the same. If these reserve bills pass, institutional interest in Bitcoin will grow. This trend may push Bitcoin into mainstream financial systems.
Supply constraints could make it harder for governments and institutions to accumulate Bitcoin in the future. If states begin buying, Bitcoin’s value may rise, reinforcing its role as a strategic reserve asset.
