- A handful of US states are pushing for state-owned Bitcoin reserves.
- Other states have already begun to invest in crypto ETFs.
- The US could potentially create a national Bitcoin reserve under the Trump administration.
President-elect Donald Trump’s declaration that he aims to make the US the “crypto capital of the planet” and establish a national Bitcoin reserve has been a key driver of the recent crypto market surge.
Now, that momentum is filtering down to the state level, with some states exploring their own strategic Bitcoin reserves.
Florida is taking steps to create its reserve as early as the first quarter of 2025, supported by pro-Bitcoin leadership and a push from the Florida Blockchain Business Association (FBBA).
“Just investing one percent of our pension fund into Bitcoin would be $1.85 billion,” said FBBA President Samuel Armes, who also noted the state’s budget surplus as another potential funding source.
Pennsylvania is also developing its own Strategic Bitcoin Reserve Act, introduced in November.
The proposal could see the state investing up to 10% of its General Fund into Bitcoin.
State Representative Mike Cabell, who co-sponsored the bill, described it as a forward-looking measure to diversify investments and hedge against inflation.
Crypto ETF investors
While Florida and Pennsylvania aim to purchase Bitcoin outright, other states like Michigan and Wisconsin have opted for a more conservative route, investing in Bitcoin-related ETFs and trusts.
Michigan’s latest SEC filing reveals an $11 million holding in the ARK 21Shares Bitcoin ETF as of September. However, the state is even more bullish on Ethereum, owning 920,000 shares across two Grayscale Ethereum trusts worth over $33 million.
Meanwhile, the State of Wisconsin Investment Board has over $220 million in Grayscale and BlackRock Bitcoin ETF shares.
As these state-level initiatives gain traction, they mirror the growing calls for a federal Bitcoin reserve, championed by figures like Senator Cynthia Lummis.
Crypto market movers
- Bitcoin is down 0.3% over the last 24 hours to $99,345.
- Ethereum is down 0.6% to $3,960.
What we’re reading
- How insiders and bots crashed Hawk Tuah Girl’s memecoin — DL News
- Warren Will Have Significant Say in Selecting the Democratic SEC Commissioner — Unchained
- Memecoin Factory Pump.Fun Bans U.K. Crypto Traders — CoinDesk
- Coinbase’s top lawyer says Operation Chokepoint 2.0 is ‘no conspiracy theory’ — and he has the proof — DL News
- VCs express skepticism towards crypto-AI projects: ‘Almost everyone will lose a lot of money’ — The Block
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
