The proposed establishment of a strategic Bitcoin reserve in the United States is predicted to significantly accelerate Bitcoin’s adoption, surpassing the impact of the anticipated launch of exchange-traded funds (ETFs) in 2024, according to cryptocurrency researcher CoinShares. The Bitcoin Act, proposed by US lawmakers, aims to direct the Treasury Department to buy 1 million BTC over a five-year period, with the plan endorsed by President-elect Donald Trump, though it has yet to be enacted into law.
CoinShares emphasized that the enactment of the Bitcoin Act would offer Bitcoin unparalleled credibility by effectively garnering endorsement from the world’s largest government, thereby reducing the stigma faced by institutional investors. This, in turn, could propel the price of Bitcoin past $1 million per coin.
The Bitcoin Act, introduced by US Senator Cynthia Loomis in July, has seen increased support following the November US elections, where Trump’s Republican party gained Senate control. Several US states, including New Hampshire and North Dakota, have also proposed bills to establish Bitcoin reserves.
In January 2024, US regulators approved a multitude of spot BTC ETFs, collectively surpassing $100 billion in net assets by November. Analysts from Steno Research anticipate additional net inflows of $48 billion into BTC ETFs in 2025, with Sygnum Bank suggesting such institutional inflows could spark positive demand shocks, elevating Bitcoin’s price significantly.
CoinShares suggested that the passing of the Bitcoin Act would not only boost BTC’s value but could also encourage other governments to follow suit, leading to a larger influx of assets into Bitcoin in the foreseeable future.
