In a bold move that could set a precedent in the United States, New Hampshire State Representative Keith Ammon has proposed allocating Bitcoin to the state’s reserves.
Rep. Ammon took to Twitter on Sunday, suggesting that the state should consider investing some of its reserves into a Bitcoin Exchange-Traded Fund (ETF), citing potential astronomical returns.
“Should the State of New Hampshire investigate allocating a small percentage of its reserves into a Bitcoin ETF? Of course,” Ammon tweeted.
Highlighting the potential windfall that could have been reaped had such a move been made earlier, Ammon pointed out that if just 5% ($4.65M) of the state’s 2016 $93M rainy day fund had been invested in Bitcoin and held onto, it would now amount to nearly half a billion dollars ($473M), boasting an astonishing 10,000% return on investment (ROI).
Ammon’s proposal comes amid a wave of increasing institutional interest in Bitcoin. Notably, major financial players like BlackRock and Fidelity have hinted at a surge in Bitcoin ETF investors, including sovereign wealth funds and pensions. Recently, Manuel Nordeste, Fidelity’s VP of Digital Assets, revealed that major pension funds and big banks are beginning to allocate to Bitcoin via ETFs due to growing interest.
Rep Ammon even highlighted Ark Invest CEO Cathie Wood’s recent prediction that Bitcoin could reach $3.8 million by 2030 if institutional investors allocate more than 5% of their portfolios to It.
“Let’s assume Wood’s prediction turns out to be accurate (it could be wrong). If NH invested 5% ($14.5M) of its $290M rainy day fund balance into a Bitcoin ETF at today’s prices and held it until 2030, it would be valued at nearly one billion dollars ($900M), a 6,200% ROI,” Ammon added.
In justifying his proposal, Ammon highlighted New Hampshire’s outstanding liabilities to the state pension system and bonds valued at close to $1.3 billion, emphasizing the need for innovative solutions to alleviate the state’s financial burden.
“How could we climb out of that hole? The answer may be staring us in the face, and it’s worthy of further investigation,” he emphasized.
That said, if New Hampshire proceeds with Ammon’s proposal, it would become the first state in the U.S. to allocate Bitcoin to its reserves. While other states, such as Florida, have shown interest in accepting Bitcoin for tax payments, none have ventured into purchasing Bitcoin for its reserves.
Meanwhile, El Salvador remains a notable outlier. It is the only country to have declared Bitcoin legal tender and accumulated the cryptocurrency for its state reserves. On Monday, the country unveiled a website allowing anyone to track purchases and view its Bitcoin treasury holdings.