Florida Abandons Bitcoin Reserve Bills Amid Soaring Institutional Demand & ETFs

Florida’s ambitious plan to create a state-level Bitcoin reserve has been abruptly shelved, joining a growing list of states where similar crypto initiatives have failed to gain legislative traction. Meanwhile, a massive outflow of over 51,000 BTC from Binance signals a strategic shift among investors, and despite a recent price dip, institutional appetite for Bitcoin remains robust—fueling expectations for new all-time highs in 2025. Dive into the latest developments shaping the intersection of state policy, exchange dynamics, and institutional strategy in the crypto market.

Florida Withdraws Strategic Bitcoin Reserve Bills

Florida’s legislative efforts to establish a state-level Bitcoin reserve have come to a halt. According to Cointelegraph, House Bill 487 and Senate Bill 550 were “indefinitely postponed and withdrawn from consideration” as of May 3. The legislative session, which adjourned on May 2, did not pass these bills, despite addressing other issues such as prohibiting fluoride in water, protecting state parks, and implementing a school smartphone ban. The bills would have allowed Florida’s chief financial officer and the State Board of Administration to invest up to 10% of certain state funds into Bitcoin (BTC).

Florida now joins Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma, all of which have seen similar Bitcoin bills fail to pass. Meanwhile, Arizona’s House Bill 1025, which would have permitted the state to invest seized funds into Bitcoin, was vetoed by Governor Katie Hobbs, who called digital assets “untested investments.” However, Arizona still has two pending bills—HB 2749 and SB 1373—that could allow up to 10% of state funds to be allocated to digital assets, though neither has reached a final vote.

Florida’s Bitcoin reserve bills withdrawn as of May 3, 2024
HB 487 and SB 550 would have allowed up to 10% of certain state funds in Bitcoin
Arizona’s similar bill vetoed, but two more bills remain under consideration

“Arizona has two more chances to be the first in the nation to establish a Bitcoin reserve,” said Satoshi Action Fund founder Dennis Porter, as cited by Cointelegraph.

Summary: Florida and several other states have failed to pass legislation for state-level Bitcoin reserves, while Arizona continues to pursue similar initiatives. (Source: Cointelegraph)

Over 51,000 Bitcoin Withdrawn from Binance Since Mid-April

On-chain data reveals a significant shift in Bitcoin holdings on Binance, the world’s largest cryptocurrency exchange by trading volume. According to TradingView, more than 51,000 BTC have been withdrawn from Binance wallets since mid-April, reducing the exchange’s reserves from approximately 595,000 BTC to around 544,500 BTC. This trend suggests a recalibration in investor strategy, with a growing preference for long-term holding or redeployment of assets outside centralized platforms.

Several factors are driving these outflows. Institutional investors and long-term holders are increasingly moving Bitcoin into cold storage, signaling longer-term conviction and reducing the likelihood of short-term selling. Additionally, the rise of custodial solutions and institutional-grade wallets supports this trend. The use of Bitcoin in decentralized finance (DeFi) and cross-platform arbitrage strategies is also contributing, as entities withdraw BTC to access yield opportunities or deploy capital in other blockchain ecosystems. Notably, positive flows into Bitcoin spot ETFs between April 21 and May 1, with daily net inflows surpassing $2 billion on several occasions, have encouraged larger players to accumulate and withdraw Bitcoin in anticipation of further price appreciation.

Period	BTC Withdrawn from Binance	Binance BTC Reserves (Start)	Binance BTC Reserves (End)
Mid-April to Early May 2024	51,000+	~595,000 BTC	~544,500 BTC

Over 51,000 BTC withdrawn from Binance since mid-April
BTC price at approximately $94,305, down 1.3% over the past day
Daily net inflows into Bitcoin spot ETFs exceeded $2 billion on several occasions between April 21 and May 1

Summary: The substantial withdrawal of Bitcoin from Binance reflects a shift toward long-term holding and institutional accumulation, potentially tightening supply and impacting future price movements. (Source: TradingView)

Bitcoin Sell-Off to $93.5K Seen as Temporary, New Highs Expected in 2025

Bitcoin experienced a 4.3% price drop over three days after nearly reaching $97,900 on May 2, settling at $94,000 on May 5. Despite this correction, Cointelegraph reports that institutional interest remains strong, keeping the $100,000 target within reach. Bitcoin’s dominance in the cryptocurrency market has surged to 70%, its highest since January 2021, even as new tokens like SUI, Toncoin (TON), PI, Official Trump (TRUMP), Bittensor (TAO), Ethena (ENA), and Celestia (TIA) have launched.

Spot Bitcoin ETFs recorded $4.5 billion in net inflows between April 22 and May 2, and open interest in Bitcoin futures markets has reached 669,090 BTC, a 21% increase since March 5. The Chicago Mercantile Exchange (CME) alone has over $13.5 billion in open interest for BTC futures, indicating robust institutional demand. However, Bitcoin has struggled to decouple from the S&P 500, with gold outperforming most assets over the past three months (up 16%), while Bitcoin declined by 5% and the S&P 500 corrected by 6.5%.

Strategy, a US-listed company led by Michael Saylor, announced the acquisition of 1,895 BTC on May 5 after doubling its capital increase plan, with an $84 billion plan announced on May 1 to fund further Bitcoin purchases. For Bitcoin to reach a new all-time high, improved US-China trade relations may be necessary, as tariffs have dampened risk appetite. Nonetheless, the key elements for a BTC bull run above $100,000 appear to be in place.

Date/Period	BTC Price	BTC Dominance	Spot ETF Net Inflows	BTC Futures Open Interest	Gold Performance (3 months)	Bitcoin Performance (3 months)	S&P 500 Performance (3 months)
May 2, 2024	~$97,900 (peak)	70%	$4.5 billion (Apr 22–May 2)	669,090 BTC (+21% since Mar 5)	+16%	-5%	-6.5%

Bitcoin price correction to $94,000 seen as temporary
Institutional inflows and ETF activity remain strong
Strategy announces $84 billion plan for further BTC acquisitions

Summary: Despite a recent price correction, strong institutional demand and ETF inflows support the outlook for new Bitcoin highs in 2025, with market dominance at its highest in over three years. (Source: Cointelegraph)

Einschätzung der Redaktion

The withdrawal of Florida’s Bitcoin reserve bills underscores the persistent regulatory and political hesitancy toward integrating digital assets into public finance at the state level. This decision reflects a broader national reluctance, as multiple states have recently failed to advance similar initiatives. The repeated setbacks suggest that, despite growing institutional interest in Bitcoin, legislative bodies remain unconvinced of its suitability as a reserve asset for public funds. This ongoing caution may delay broader adoption and could limit the pace at which digital assets are normalized within governmental financial strategies. However, the continued pursuit of such bills in other states indicates that the debate is far from settled, and future legislative cycles may revisit the issue as the digital asset landscape evolves.

Regulatory uncertainty and political caution continue to hinder state-level Bitcoin adoption.
Legislative momentum for public sector Bitcoin reserves remains weak, despite institutional interest.
Future policy shifts are possible as digital asset markets mature and public finance priorities evolve.

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