Strategic Bitcoin Reserve Could Transform BTC Adoption in the US

Establishing a strategic Bitcoin (BTC) reserve in the United States could drive Bitcoin adoption more significantly than the launch of exchange-traded funds (ETFs) in 2024, cryptocurrency researcher CoinShares stated in a Jan. 10 blog post. The Bitcoin Act, proposed in 2024, directs the U.S. Treasury Department to create a “strategic Bitcoin reserve” by purchasing 1 million BTC over five years. President-elect Donald Trump has endorsed the plan, although it has yet to become law. “We believe that the enactment of the Bitcoin Act in the United States would have a more profound long-term impact on Bitcoin than the launch of ETFs,” CoinShares wrote. The research highlighted that Bitcoin’s “credibility” as an asset class remains a key hurdle for institutional adoption. Passing the Bitcoin Act would reduce this stigma by granting Bitcoin the “endorsement of the world’s largest government,” the post noted. Institutional Momentum Introduced by U.S. Senator Cynthia Loomis in July, the Bitcoin Act has gained traction following November’s U.S. elections, where Trump’s Republican Party took control of the Senate. Several states, including New Hampshire and North Dakota, have also proposed bills to establish Bitcoin reserves. These efforts align with the January 2024 approval of nearly a dozen spot Bitcoin ETFs, which reached $100 billion in net assets by November, per Bloomberg Intelligence. Crypto analysts at Steno Research project additional ETF inflows of $48 billion in 2025. Such institutional activity could create significant “demand shocks,” potentially driving Bitcoin prices higher, Sygnum Bank suggested in December. Passing the Bitcoin Act would amplify this effect, pushing BTC prices past $1 million per coin, according to Blockstream CEO Adam Back. “Combined with other governments following suit, such a development could catalyze a much larger flow of assets into Bitcoin in the years to come,” CoinShares concluded.