Arizona lawmakers passed a bill on Monday, according to Bloomberg Government, potentially making it the first state to mandate public funds investment in Bitcoin. The bill, known as the Arizona Strategic Bitcoin Reserve Act, allows the state treasurer and retirement system to invest up to 10% of available funds in digital assets, specifically Bitcoin.
The bill now awaits Democratic Governor Katie Hobbs' signature. Several other states, including Iowa, Missouri, and Texas, are considering similar measures to establish strategic Bitcoin reserves.
Asset managers like BlackRock and Fidelity have previously suggested allocating a portion of investment portfolios to Bitcoin. BlackRock recommended a 1% to 2% allocation in December, while Fidelity suggested a 2% to 5% range.