Following the regulatory approval of Bitcoin ETFs by the US Securities and Exchange Commission in January, there has been a surge of interest from institutional investors and US states in the market.

Wisconsin's investment board has invested approximately $100 million in BlackRock's iShares Bitcoin Trust ETF, with the acquisition of $98.6 million worth of shares. This significant investment contributes to BlackRock's growing presence in the newly regulated market, which has seen substantial growth in inflows and trading volume since January.

New Hampshire State Representative and Vice Chair of Commerce and Consumer Affairs, Keith Ammon, has initiated a discussion on diversifying the state's financial reserves by investing in Bitcoin ETFs.

Ammon's analysis highlights the potential benefits, stating that if New Hampshire had allocated just 5% ($4.65 million) of its 2016 rainy day fund to Bitcoin, it would now be worth nearly half a billion dollars ($473 million), representing a substantial 10,000% return on investment. Fidelity's Vice President of Digital Assets, Manuel Nordeste, also notes the growing trend among major pension funds and big banks towards allocating funds to spot Bitcoin ETFs.

With 25% of pension managers personally owning digital assets, there is a significant shift in interest within the digital asset market. If only 1% of state pension assets under management ($5.5 trillion) were to flow into Bitcoin, it would surpass mining revenue, creating a supply shortage relative to demand and driving further price increases for Bitcoin.