Bitcoin Investors Love The Possibility of US Government Investing In Crypto. For Trump, Lots of Talk, But No Action Yet.
Bitcoin’s historic “moon landing” level highs have come down to Earth. They rose thanks to the Trump administration’s pro-cryptocurrency rhetoric. One piece of insight the Bitcoin market was hanging onto was the creation of a Sovereign Wealth Fund (SWF), and a Strategic Reserve that would eventually hold seized cryptos, but also, perhaps, invest in Bitcoin (BTC) as well.
“I think it’s the reasonable next step for the U.S. to do,” said Martins Benkitis, co-founder and CEO of Gravity Team, a digital assets market maker with offices in Singapore and Latvia. “BTC is on its path to becoming a better gold, a better store of value, and it would be a wise and reasonable choice to own some.”
On March 6, Trump signed an Executive Order to create the Strategic Bitcoin Reserve. Part of that order was the creation of a Digital Assets Stockpile. However, that stockpile “will not acquire additional assets beyond those obtained through forfeiture proceedings.” That means the government is not a buyer. The March 6 Executive Order was not bullish for BTC, and prices have been falling since.
More recently, at the March 20 Blockworks Digital Assets Summit, Trump reiterated his desire to make America the “undisputed Bitcoin superpower and crypto capital of the world.” But that’s a regulation angle and has nothing to do with government investing.
“I don’t think we’ll see the U.S. creating a sovereign wealth fund for Bitcoin anytime soon,” said Ryan Chow, Co-founder & CEO of Solv Protocol, a decentralized digital assets asset manager in Singapore. “It could be a smart move for Trump to do it, though. As the digital economy grows, holding Bitcoin in a strategic reserve is starting to make a lot of sense. If a government-backed fund were to invest, it would send a …
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