New Hampshire State Representative Keith Ammon recently discussed the potential advantages of diversifying the state's financial reserves into Bitcoin exchange-traded funds (ETFs) in a social media post dated May 12.

Following the SEC's approval of trading spot Bitcoin ETFs on US exchanges in January, these products have garnered significant attention, attracting major financial institutions such as JPMorgan Chase and trading firm Susquehanna International Group, which have disclosed substantial holdings in these ETFs.

Ammon outlined a hypothetical scenario where if the state had invested 5% of its rainy day fund into Bitcoin in 2016, the initial $4.65 million investment could have ballooned to approximately $473 million, representing an impressive 10,000% profit. Regrettably, the state missed out on this substantial return on investment opportunity by not investing in the leading digital asset.

However, Ammon suggested that the state could rectify this oversight and potentially achieve a remarkable 6,200% return on investment by allocating just 5% of its $290 million rainy day fund to a Bitcoin ETF now and holding it until 2030.

This projection is based on insights from influential figures in the crypto space, such as Ark Invest CEO Cathie Wood, who anticipates a significant surge in Bitcoin's value. Wood suggests that if institutions allocate 5% of their portfolios to Bitcoin, its price could skyrocket to $3.8 million by 2030.

Additionally, Ammon cited Manuel Nordeste, Fidelity's Vice President of Digital Assets, who recently highlighted the growing inclination of major pension funds and prominent banks toward integrating Bitcoin ETFs into their portfolios.

Ammon also noted that a significant portion of pension managers—25% to be exact—revealed personal ownership of digital assets during a recent panel discussion. He pointed out that if just 1% of state pension AUM ($5.5 trillion) flowed into BTC, it could surpass mining revenue, resulting in a supply shortage relative to demand and driving up the price of Bitcoin.

Considering these insights, Ammon suggests that Bitcoin exposure could help alleviate New Hampshire's financial burdens, given its outstanding liabilities to the state pension system of $1.25 billion and for bonds of around $200 million. He emphasizes the importance of further investigation into this potential avenue.