An increasing number of U.S. states are considering legislation aimed at creating strategic Bitcoin reserves, indicating a notable shift in the approach of public funds toward cryptocurrency.
Investment management firm VanEck projects that if these initiatives are passed, the states could together acquire approximately 247,000 BTC, valued today at about $23.7 billion.
What motivates states to invest in Bitcoin? Various reasons are driving state-managed funds to contemplate Bitcoin (BTC):
- Inflation Hedge: Commonly referred to as “digital gold,” Bitcoin is often seen as protection against currency devaluation.
- Diversification: Cryptocurrencies tend to function independently of traditional financial markets.
- Growth Potential: Historical trends show Bitcoin’s price appreciation, indicating possible high returns. According to Galaxy Digital’s head of research, Alex Thorn, the Bitcoin price could reach $185,000 by the end of 2025.
Here’s a breakdown of states that are already taking steps toward Bitcoin investments:
Alabama
In December, State Auditor Andrew Sorell expressed that Alabama should set up a strategic Bitcoin reserve, stating, “Crypto is here to stay.” He emphasized the global acceptance of cryptocurrency, noting, “The debate over crypto’s success has concluded. Now, the battle for which states will gain from it has started.”
Arizona
Last month, the Arizona Senate Finance Committee voted 5-2 in favor of the “Arizona Strategic Bitcoin Reserve Act.” The proposed legislation would allow up to 10% of Arizona’s public funds to be allocated to invest in Bitcoin and other digital assets. Next, it will proceed to the Senate Rules Committee for further debate and potential amendments before going to the Arizona House of Representatives.
Florida
In October, Florida CFO Jimmy Patronis sent a letter to the State Board of Administration requesting a report on the feasibility, risks, and potential advantages of investing a portion of state retirement funds into cryptocurrency. “Managing state pensions for our firefighters, teachers, and police officers means focusing on returns and ensuring the best investment decisions for Floridians,” Patronis noted, adding that investing in an asset like Bitcoin presents unique opportunities.
Kansas
According to a January report by Pensions & Investments, a new bill introduced in the Kansas State Senate could enable the Kansas Public Employees Retirement System in Topeka to allocate up to 10% of its $27.4 billion in assets into Bitcoin ETFs.
Illinois
On January 29, the Bitcoin Strategic Bill was sent to the Rules Committee to expedite its approval. Illinois State Rep. John Cabello introduced the legislation to designate Bitcoin as a strategic asset. This would allow the Illinois State Treasurer to manage a fund that would include gifts, grants, and Bitcoin donations from the public and governmental entities.
Iowa
This month, Iowa State Rep. Taylor Collins proposed a bill for investing public funds in Bitcoin and other digital assets.
Massachusetts
State Senator Peter Durant, a Republican from the Worcester and Hampshire districts, recently put forth a bill to invest the state’s surplus funds into Bitcoin and other digital currencies.
Michigan
Last year, the State of Michigan Retirement System revealed it owned 110,000 shares of the ARK 21Shares Bitcoin ETF, valued at roughly $6.6 million as of June 30, according to a 13F filing with the U.S. Securities and Exchange Commission.
Missouri
Representative Ben Keathley of Missouri introduced House Bill 1217, aiming to establish a Bitcoin Strategic Reserve Fund. This fund would allow the state treasurer to invest in and hold Bitcoin as a safeguard against inflation and diversify the state’s financial holdings. The bill was filed on February 6.
Montana
Montana legislators are looking to invest up to $50 million in digital assets, including Bitcoin.
New Hampshire
A recent bill proposed by Rep. Keith Ammon could allow New Hampshire’s treasury to maintain Bitcoin as a reserve asset, enabling custody of BTC by the state’s treasury.
New Jersey
In July 2024, Jersey City Mayor Steven Fulop suggested that the city’s pension fund might explore Bitcoin ETFs, at the time when Bitcoin was priced at $67,000. Since then, Fulop has been relatively silent on the matter.
New Mexico
Senator Anthony Thornton of New Mexico recently drafted Senate Bill 275, or the “Strategic Bitcoin Reserve Act,” which proposes a 5% allocation of the state’s public funds into Bitcoin.
North Carolina
In early 2023, North Carolina’s lower house approved a bill for the Department of State Treasurer to investigate the viability of incorporating Bitcoin into state holdings. Fast forward to February 10, 2025: Cointelegraph reports the introduction of the NC Digital Assets Investments Act, which would authorize investments in digital assets via exchange-traded products.
North Dakota
Earlier this month, the state legislature proposed Resolution 3001, which would enable investment of state funds into digital assets. Additionally, Representative Nathan Toman supports a bill to safeguard the rights of Bitcoin miners.
Ohio
Steve Demetriou, Ohio House GOP Majority Whip, has proposed legislation to allocate up to 10% of state-controlled funds toward a Bitcoin reserve. He highlighted that Bitcoin could harness Ohio’s substantial natural gas reserves to meet energy demands.
Pennsylvania
A November 2024 bill aimed to permit the state treasurer and public pension funds to invest in Bitcoin. Although it did not pass, it sparked considerable discussion.
South Dakota
If passed, South Dakota House Bill 1202 would allow the state to invest public funds in Bitcoin, as introduced by freshman representative Logan Manhart.
Texas
Senate Bill 778 is designed to create a Bitcoin reserve distinct from the state’s general revenue fund, collecting taxes and donations in cryptocurrency. Additionally, Texas would implement a minimum five-year embargo on selling state-held bitcoins.
Utah
Dennis Porter, founder and CEO of the Satoshi Act Fund, informed Republican Senator Cynthia Lummis about Utah’s digital asset taskforce. This taskforce is focused on voting on crypto and web3-related bills during the off-season.
“Every single bill from this taskforce has passed into law in recent years, and our strategic Bitcoin reserve legislation has just made it through,” Porter stated in February.
Wisconsin
The first U.S. state to invest in Bitcoin ETFs. As of Q4 2024, the State of Wisconsin Investment Board (SWIB) held 3.1 million shares of BlackRock’s iShares Bitcoin Trust (IBIT), valued at around $588 million, having initially invested in the Grayscale Bitcoin ETF before expanding their holdings.
Wyoming
Wyoming lawmakers are looking to permit investments of up to 3% of state funds in Bitcoin. This proposed legislation would apply to key funds, including the general fund and the permanent mineral trust fund, potentially marking a significant change in public fund management. If approved, the state treasurer could directly invest in Bitcoin through secure custody solutions, registered custodians, or exchange-traded products.
What’s Next?
As interest in Bitcoin rises, its role in state investment strategies is changing. Should additional states proceed with legislation, Bitcoin could become a significant asset within public pension funds across the nation.
