A proposed Bitcoin Act in the United States could have a profound effect on Bitcoin adoption, even more than 2024’s exchange-traded fund (ETF) launches, according to CoinShares.
The act aims to create a strategic Bitcoin reserve, directing the US Treasury to purchase 1 million BTC over five years.
This move is seen as potentially accelerating Bitcoin’s mainstream acceptance and boosting its credibility as an asset class.
Impact on Institutional Adoption
CoinShares believes that the Bitcoin Act would significantly reduce the stigma surrounding Bitcoin, making it more appealing to institutional investors.
The plan has gained support, with President-elect Donald Trump endorsing the idea, although it has yet to pass into law.
The act could help Bitcoin gain the endorsement of the US government, addressing concerns that have previously hindered institutional investment.
Growing Support and Legislative Momentum
Introduced by Senator Cynthia Loomis in July, the Bitcoin Act has gained traction, especially following the November 2024 US elections, where Trump’s Republican party gained control of the Senate.
Several states, including New Hampshire and North Dakota, have also proposed bills to create Bitcoin reserves.
Potential for Price Surge
With the approval of Bitcoin ETFs in early 2024, Bitcoin’s institutional adoption is gaining momentum.
Analysts predict that ETFs could bring in an additional $48 billion in 2025, creating demand shocks that could drive Bitcoin’s price higher.
If the Bitcoin Act passes, it could push BTC’s price past $1 million per coin, according to Adam Back, CEO of Blockstream.
CoinShares suggests that other governments following the US’s lead could further accelerate Bitcoin adoption, bringing even more assets into the cryptocurrency market in the coming years.