US states advance Bitcoin reserve legislation as Abu Dhabi discloses over $460 million investment in BTC ETFs

Bitcoin (BTC) reserve has become a growing trend in the United States, with twenty states pushing legislation to establish a reserve for the top crypto. This follows Abu Dhabi sovereign wealth fund Mubadala Investment Company's $461 million investment into BlackRock's iShares Bitcoin Trust (IBIT).

US states embrace Bitcoin as race for national adoption continues

Lawmakers from twenty US states have introduced bills advocating for state-level Bitcoin reserves, potentially leading to substantial government investments in the top crypto.

Asset manager VanEck's Head of Digital Assets Research Mathew Sigel stated in an X post on Wednesday that these states could spur a $23 billion or 247K BTC buying pressure.

Among the states listed are Oklahoma, Massachusetts, Ohio, Texas, Utah, Iowa, Illinois, Kentucky, Missouri, Maryland, New Mexico, South Dakota, Montana, New Hampshire, North Carolina, Arizona, Florida, and Pennsylvania.

States such as New Mexico, North Carolina, Oklahoma, South Dakota and Missouri have the highest estimated investment allocations, worth $2.1 billion, $2.6 billion, $1.4 billion, $1.6 billion and $1.7 billion worth of Bitcoin, respectively. 

While most states have yet to disclose specific figures, proposed funding sources include general funds, stabilization reserves, and state treasurers' accounts.

Michigan is the latest US state to consider incorporating Bitcoin into its financial strategy, with lawmakers introducing a bill to establish a BTC strategic reserve.

Representatives Bryan Posthumus and Ron Robinson introduced House Bill 4087 on Thursday, aiming to amend the state's Management and Budget Act to allow it to invest in Bitcoin.

With this move, Michigan becomes the twentieth state exploring legislation for state-level cryptocurrency investments, reflecting a broader trend of government interest in digital asset reserves.

The latest trend follows President Trump’s executive order on January 23 to support the growth of digital assets, including plans to evaluate the creation of a national digital asset stockpile. The stockpile would likely include Bitcoin and other top altcoins. 

Investors expect more states to begin looking into digital asset reserves by passing bills to include Bitcoin in their investment or pension plans.

Meanwhile, Abu Dhabi's sovereign wealth fund Mubadala Investment Company disclosed in a form 13F that it holds $461 million in BlackRock's Bitcoin ETF (IBIT). The Bitcoin holdings, which comprise just 2.3% of its portfolio, place the company as the seventh largest holder of IBIT.

Mubadala Investment Company isn't the first sovereign wealth fund with Bitcoin exposure. Norway's sovereign wealth fund, Norges Bank Investment Management (NBIM), also holds about $355 million in indirect Bitcoin exposure, according to K33 Research.