Catenaa, Friday, February 14, 2025 – Florida Republican Sen. Joe Gruters has introduced a bill proposing that the state allocate a portion of its funds to Bitcoin as a hedge against inflation, joining a growing number of states considering digital asset reserves.
The bill, introduced to the Florida Senate on February 7, would authorize Chief Financial Officer Jimmy Patronis to invest in Bitcoin through state-managed funds, including the general reserve fund and select agency trust funds. Bitcoin holdings would be capped at 10% of any fund’s assets.
“The state should have access to tools such as Bitcoin to protect against inflation,” Gruters said, citing financial firms like BlackRock and Fidelity that recognize Bitcoin as a store of value.
Florida’s move follows similar legislation in other states.
Wyoming recently proposed a bill allowing for a 3% Bitcoin allocation, while Kentucky became the 16th state to introduce legislation supporting a Bitcoin reserve.
Gruters’ proposal also comes months after Patronis advocated for Bitcoin investment in state retirement funds. In an October letter, Patronis called Bitcoin “digital gold” and suggested it could help diversify the state’s portfolio.
Utah has emerged as a frontrunner in adopting Bitcoin reserves, with a bill allowing up to 5% of public funds to be allocated to Bitcoin and other digital assets now advancing in the state Senate.
Despite the momentum, not all states have embraced the idea. North Dakota lawmakers recently rejected a proposal that would have allowed investment in cryptocurrencies and precious metals, with the bill failing in a 32-57 vote on Jan. 31.
Meanwhile, U.S. spot Bitcoin exchange-traded funds (ETFs) saw inflows nearing $5 billion in January, a strong start that could push them toward $50 billion or more by year’s end, according to Bitwise CIO Matt Hougan.
