The strong institutional demand for Bitcoin through ETFs coincides with significant developments at the state government level.
On Monday, the Arizona House of Representatives approved two bills that could lead to the creation of the first state Bitcoin reserve in the United States.
Senate Bill 1025, known as the Arizona Strategic Bitcoin Reserve Act, was passed with 31 votes in favor and 25 against, proposing to allocate up to 10% of the state treasury and pension system funds to digital currencies, particularly Bitcoin.
A complementary bill, SB1373, which aims to establish a state reserve of digital assets, was approved with broader support of 37 votes in favor and 19 against. Both measures are now awaiting signature from Arizona Governor Katie Hobbs.
Arizona's legislative push follows the establishment of a federal Bitcoin reserve by President Donald Trump earlier this year. This reserve will be funded through cryptocurrencies recovered from seizures of criminal or civil assets and zero-cost budget strategies.
If Governor Hobbs signs the law, Arizona will become the first state to formally establish a cryptocurrency reserve, setting a precedent for other states that might consider similar measures in a context of increasing institutional adoption of digital assets.
