Trump, ETFs, and Institutional Recommendation Bitwise Chief Investment Officer Matthew Hougan recently outlined several developments he thinks can send Bitcoin (BTC) on its way to $1 million. At the heart of his analysis is BlackRock’s influential recommendation for a 2% portfolio allocation to Bitcoin-a seal of approval that shows institutional confidence in the cryptocurrency. The endorsement from the world’s largest asset manager could pave the way for broader acceptance among both institutional and retail investors. He also pointed out that Bitcoin ETFs have seen unprecedented success, setting new performance records. This rise in popularity of ETFs underlines the growing demand on the part of investors for easier access to BTC without holding the asset directly. Besides these financial milestones, Hougan pointed to high-profile endorsements as another catalyst for BTC mainstream credibility. For example, billionaire investor Ray Dalio has recently spoken about the need to own some Bitcoin in a diversified portfolio. And Donald Trump’s appearance as a keynote speaker at a major Bitcoin conference is an indication of growing political acceptance of the cryptocurrency, marking a shift in perception of it as a legitimate financial asset. Florida Might Put Bitcoin into Reserve Adding to Bitcoin’s momentum, Florida is mulling the creation of a state-backed Bitcoin reserve that may launch as early as 2025. Samuel Armes, President of the Florida Blockchain Business Association (FBBA), has presented an investment plan where 1% of the $185.7 billion pension fund in Florida will be invested in BTC, which could potentially make it a $1.857 billion reserve. Another part of the proposal is an investment into 1% of the state’s $116.5 billion budget surplus, which can add another $1.165 billion. Armes argued that such a move would not only diversify Florida’s investment portfolio but would also position the state at the front in the innovation of blockchain. He noted that the state pension fund already has indirect exposure to cryptocurrency through hedge funds and investments in companies like Coinbase and MicroStrategy. The legislative environment in Florida is another factor supporting this proposal. With a pro-crypto stance, lawmakers are likely to view the initiative favorably. Armes revealed plans to push for this reserve alongside three other Bitcoin-focused bills during the upcoming legislative session, highlighting Florida’s potential to set a precedent for other states considering similar moves. These events underline Bitcoin’s increasing embedment within the mainstream financial systems and political frameworks, further giving credence to its meteoric rise.
