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A New Hampshire representative is proposing an investment in Bitcoin ETFs to address the state’s financial liabilities
New Hampshire State Representative Keith Ammon discussed the potential benefits of the state diversifying its financial reserves Bitcoin exchange-traded funds (ETFs) in a May 12 social media post.
In January, the SEC approved spot Bitcoin ETFs for trading on US exchanges. Since then, the products have attracted enormous interest, with major financial institutions such as JPMorgan Chase, trading firm Susquehanna International Group and others disclosing substantial holdings in these ETFs.
ROI of 6200%.
Ammon highlighted a hypothetical scenario where if the state had invested 5% of its fund in Bitcoin in 2016, the initial investment of $4.65 million could have grown to approximately $473 million, marking a remarkable 10,000% profit .
However, the state missed this significant ROI opportunity because it failed to invest in the most important digital asset.
However, Ammon noted that the state could correct the mistake and achieve a remarkable 6,200% return on investment by allocating just 5% of its $290 million fund to a Bitcoin ETF now and holding it until 2030.
His projection comes from the insights of influential figures in the cryptocurrency industry, such as the CEO of Ark Invest Cathie Woodwhich anticipates a notable surge in the value of Bitcoin. According to Wood, if institutions dedicated 5% of their portfolios to Bitcoin, its price could skyrocket to $3.8 million by 2030.
Furthermore, Ammon refers to Manuel Nordeste, Fidelity Vice President of Digital Assets, who recently highlighted the growing propensity of major pension funds and major banks to incorporate Bitcoin ETFs into their portfolios.
Ammon also points out that a substantial portion of pension managers – 25% to be precise – disclosed personal ownership of digital assets during a recent panel. He observed:
“If only 1% of state pension AUM ($5.5 trillion) flowed into BTC, mining revenue would be minimal, leading to a shortage of supply relative to demand and an increase in the price of Bitcoin. “
Considering these insights, Ammon hypothesizes that exposure to Bitcoin could ease New Hampshire’s financial burdens. He said:
“The State of New Hampshire has outstanding debts to the state pension system of $1.25 billion and bonds of approximately $200 million. How could we get out of that hole? The answer may be right in front of us and is worthy of further investigation.”