Utah One Step Closer to Becoming First US State with Bitcoin Reserve
Utah is on track to becoming the first U.S. state to establish a Bitcoin reserve, following the House’s approval of the Strategic Bitcoin Reserve bill.
The legislation, which allows the state to invest in digital assets, now moves to the Senate for further consideration.
Dennis Porter, CEO of the Satoshi Action Fund, announced the bill’s progress on February 6, confirming that it had successfully cleared the Utah House.
Utah’s HB230 Advances with Strong 8-1 Vote
The bill, officially known as HB230, was advanced by the Utah House Economic Development Committee with an 8-1 vote on January 28.
Representative Jordan Teuscher introduced the measure on January 21, proposing that the state treasurer be granted authority to allocate up to 5% of certain public funds into Bitcoin, high-cap cryptocurrencies, and stablecoins.
Supporters of the bill believe Utah is leading the way in state-backed Bitcoin investment.
“We firmly believe that Utah will be the first state to introduce this legislation,” Porter stated in a recent interview.
If the bill gains Senate approval, it will proceed to the governor’s desk for a final decision.
MASSIVE BREAKING: The ‘Strategic Bitcoin Reserve’ bill has officially PASSED the House in the state of Utah – The bill now moves onto the Senate! pic.twitter.com/qIaE7bWCzB
— Dennis Porter (@Dennis_Porter_) February 6, 2025
Utah is not alone in exploring a Bitcoin reserve. Arizona has made similar progress with its Strategic Bitcoin Reserve Act (SB1025), co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger.
The measure recently passed the Senate Finance Committee and awaits a House vote.
Meanwhile, New Mexico introduced its own version, SB57, on February 4, led by Senator Ant Thornton.
Not all states have embraced the idea.
North Dakota lawmakers recently rejected a proposal (HB1184) that would have allowed investment in crypto and precious metals, with the bill failing in a 32-57 vote on January 31.
Despite setbacks, 14 U.S. states have introduced bills permitting crypto investments, according to Bitcoin Reserve Monitor.
US Spot Bitcoin ETFs See $5B Inflows in January
In another positive development, US spot Bitcoin exchange-traded funds (ETFs) saw inflows totaling nearly $5 billion in January, a strong start that could push them toward $50 billion or more by the end of the year, according to Bitwise CIO Matt Hougan.
As reported, Hougan noted that spot Bitcoin ETFs absorbed $4.94 billion in January alone, an annualized pace of approximately $59 billion.
He compared this to $35.2 billion in total inflows during 2024, emphasizing the growing investor appetite for Bitcoin-backed investment products.
Despite noting month-to-month fluctuations, Hougan remains confident that Bitcoin ETFs will exceed $50 billion in inflows by the end of 2024.
Among the major players, BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the market, attracting $3.2 billion in net inflows for January.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed with nearly $1.3 billion in net inflows, based on Farside Investors data.
Other ETFs saw varied levels of inflows, with Grayscale’s Bitcoin Mini Trust ETF (BTC) pulling in $398.5 million, and Bitwise’s Bitcoin ETF (BITB) accumulating over $125 million.
Source: cryptonews.com
