At least one unnamed country has shown interest in investing in the first cryptocurrency via exchange-traded funds (ETFs), according to Bitwise CEO Hunter Horsley.
We just provided some information for a nation state asking about Bitcoin ETFs.
Considering moving some exposure from foreign currency govt bonds into BTC.
Bitcoin is entering a new chapter —
— Hunter Horsley (@HHorsley) January 15, 2025
He said the firm provided the country’s authorities with information on request.
“The possibility of moving some assets from foreign currency government bonds into BTC is being considered. Bitcoin is entering a new chapter,” he wrote.
National reserves are typically composed of highly liquid, low-risk assets such as US Treasuries, dollars, euros, gold and the like.
January marked a year since spot bitcoin ETFs began trading in the United States. Bitwise is the issuer of one of the 11 funds.
According to Bloomberg ETF analyst James Seyffart, the firm’s product ranks among the top 20 ETF launches in US history.
Texas Senate backs creation of a bitcoin reserve
US president-elect Donald Trump proposed creating a Strategic Bitcoin Reserve (SBR) at the federal level during the campaign. In December, he confirmed the intention.
At the state level, similar initiatives have been floated in at least Pennsylvania, Florida, Ohio and Texas.
In the latter, on December 12 Republican Giovanni Capriglione introduced a bill in the House of Representatives. He proposed funding the reserve with citizen donations and taxes paid in the digital asset.
On January 16 his fellow Republican, Texas senator Charles Schwertner, introduced SB 778, also providing for the creation of an SBR. The state could allocate up to 1% of its revenue every two years to purchase the cryptocurrency.
It’s time for Texas to lead the way in establishing a Strategic Bitcoin Reserve. That’s why I filed SB 778, which, if passed and signed into law, would make Texas the first state in the nation to establish a Strategic Bitcoin Reserve. This would position our state at the… pic.twitter.com/dRdCt86Otr
— Charles Schwertner (@DrSchwertner) January 15, 2025
One user noted that Texas is, in effect, the world’s tenth-largest economy. Given the size of the state’s General Revenue Fund , that implies investments in “digital gold” of about ~$7.2 billion over a decade.
On January 15 in Oklahoma, Republican Cody Maynard introduced the Strategic Bitcoin Reserve Act to the House of Representatives. If approved, the bill would allow state agencies and pension funds to invest in the cryptocurrency.
He argues this would protect citizens’ savings from debasement.
“As a decentralised form of money, bitcoin is not subject to manipulation and is not created by government entities. It is the best store of value for those who believe in financial freedom and hard-money principles,” Maynard said.
Fidelity analysts have forecast that several countries will add the first cryptocurrency to their reserves in 2025.
Forbes contributor and NovaBlock Capital partner Lior Shimron said he was confident that at least one of the world’s largest economies would be among them.