New Hampshire will explicitly allow the state treasurer to invest in digital assets such as Bitcoin through a first-of-its-kind law signed Tuesday by Gov. Kelly Ayotte.

The law (H.B. 302) permits the state treasurer to invest up to 5% of certain state funds in precious metals as well as digital assets with a market capitalization of over $500 billion. Bitcoin is the only cryptocurrency currently eligible under that definition.

The law is a major win for Bitcoin advocates, who have been pushing similar legislation to create strategic reserves in roughly two dozen states. Arizona lawmakers passed a measure …