Keith Ammon, New Hampshire State Representative for New Boston, Mont Vernon, Lyndeborough, and Vice Chair of Commerce and Consumer Affairs, initiated a conversation regarding the possibility of diversifying the state's financial reserves into Bitcoin ETFs. His remarks, shared on X (formerly Twitter), present a hypothetical scenario that underscores the remarkable growth of BTC over the past decade.
What New Hampshire Can Achieve With Bitcoin
Ammon's analysis of the state's financial choices coincides with a growing recognition of Bitcoin and other digital assets by significant institutional investors. "Should the State of New Hampshire investigate allocating a small percentage of its reserves into a Bitcoin ETF?," his in-depth investigation asked.
Although it's true that hindsight is 20/20, the State of New Hampshire would have made a 10,000% return on investment if it had invested just 5% ($4.65M) of its $93M rainy day fund in Bitcoin and held it.
Following a surge in institutional interest in Bitcoin as a viable asset class, Keith Ammon, New Hampshire State Representative for New Boston, Mont Vernon, Lyndeborough, and Vice Chair of Commerce and Consumer Affairs, initiated a discussion on diversifying the state's financial reserves into Bitcoin ETFs.
Ammon's comments, shared on X (formerly Twitter), underscore a dramatic hypothetical scenario highlighting Bitcoin's explosive growth over the past decade.
Ammon pointed to recent insights from BlackRock, the world's largest asset manager, which revealed a noticeable increase in Bitcoin ETF investors, including sovereign wealth funds and pensions. He also referenced Manuel Nordeste, Fidelity's Vice President of Digital Assets, who highlighted a growing trend among major pension funds and big banks towards allocating to spot Bitcoin ETFs, driven by escalating interest in the digital asset market.
In response to Nordeste's insights, Ammon noted that 25% of pension managers present at a recent panel personally owned digital assets, suggesting that if just 1% of state pension AUM ($5.5 trillion) flowed into BTC, it could lead to a supply shortage relative to demand and a price increase for Bitcoin.
Ammon also referenced a prediction by Cathie Wood, CEO of Ark Invest, who forecasted a significant rise in Bitcoin's value, speculating that it could reach $3.8 million per unit by 2030 if institutional investors allocated more than 5% of their portfolios to the cryptocurrency.
Utilizing Wood's prediction, Ammon extrapolated potential returns for New Hampshire, suggesting that investing 5% ($14.5 million) of its $290 million rainy day fund balance into a Bitcoin ETF could yield nearly one billion dollars ($900 million) by 2030, representing a 6,200% ROI.
Ammon argued that exploring alternative investments like Bitcoin could be a viable solution to New Hampshire's financial challenges, particularly its outstanding liabilities totaling approximately $1.45 billion, including state pension system obligations and bonds.
Reactions from the Bitcoin community and financial experts were swift. James Lavish, a noted Bitcoin authority, emphasized the importance of considering Bitcoin from a fiduciary responsibility perspective. Dennis Porter, CEO and co-founder of Satoshi Act, expressed support for the notion.
Ammon's proposal underscores the increasing politicization of Bitcoin in the US, with crypto becoming a significant electoral issue. This trend is further evidenced by former US President Donald Trump's recent pro-BTC stance, reflecting the growing relevance of crypto in political strategies and national economic discussions.
May 2024, Cryptoniteuae