Brazil is taking a significant step toward potentially creating a national Bitcoin reserve. On August 20, the country’s House of Representatives will hold a public hearing to discuss a bill that would allow up to 5% of its $300 billion treasury reserves—roughly $15 billion—to be allocated to Bitcoin.
The proposal aims to protect Brazil’s reserves from foreign exchange volatility and geopolitical risks while also promoting blockchain innovation. The debate has already attracted strong opinions; the chief of staff to the Vice President has publicly supported the idea, while a central bank director has voiced skepticism. This move aligns with a broader global trend, initiated by a US executive order, with other countries like Kazakhstan, India, and Sweden also exploring similar plans.
This national-level interest is mirrored by a surge in institutional adoption. Michigan’s State Retirement System, for example, has significantly increased its Bitcoin exposure. Regulatory filings show the pension fund now holds 300,000 shares of the ARK 21Shares Bitcoin ETF ($ARKB), valued at $11.3 million. This is a big jump from its previous holdings. The fund also maintains a stable $9.6 million position in Ethereum via the Grayscale Ethereum Trust ($ETHE).
Michigan’s move follows a similar, much larger investment of $321 million by the State of Wisconsin Investment Board, indicating a growing appetite for cryptocurrency among public pension funds. This institutional interest has contributed to a surge in crypto ETF inflows, pushing both Bitcoin and Ethereum to new all-time highs.
August 2025, Cryptoniteuae
