Cathie Wood of ARK Invest: The US Might Soon Buy Bitcoin for Reserve

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TLDR

  • Cathie Wood is of the opinion that the US government might start buying Bitcoin for its national strategic reserve.
  • The Trump administration has concentrated on confiscated Bitcoin but could switch to direct purchases.
  • Wood indicates that Trump’s increasing connections with the crypto industry may affect his support for Bitcoin.
  • The establishment of a national Bitcoin reserve is in line with Trump’s efforts to back the cryptocurrency sector.
  • Several US states, such as Florida and Texas, are working on similar crypto stockpile – related legislation.

Cathie Wood, the founder of , thinks that the U.S. government may soon start purchasing Bitcoin to include it in the national strategic reserve. This follows a period when the government has mainly focused on confiscating Bitcoin instead of directly buying it. In a recent episode of the “Bitcoin Brainstorm” podcast, Wood said that the Trump administration might take action on this issue soon.

Wood implies that the federal government has shown some hesitation in directly obtaining Bitcoin for the strategic reserve. According to her, the original plan for the reserve, which was set up shortly after President Trump’s second term started, was to own 1 million bitcoins. She contends that the government might soon change its strategy and start buying Bitcoin rather than relying only on seized assets, as these Bitcoin holdings were not part of the initial acquisition plan.

Wood also mentions that Trump’s personal interests in the cryptocurrency field could influence his support for Bitcoin acquisition. She points out that the crypto community played a significant role in Trump’s 2016 presidential win. Moreover, she argues that Trump’s family has an increasing stake in the success of the cryptocurrency industry, which could be a driving factor for continued support of Bitcoin.

Donald Trump’s Continued Support for Crypto

Cathie Wood explains that may continue to support cryptocurrencies, especially considering the political and economic advantages. Wood notes that as Trump nears the final stages of his presidency, he would probably want to avoid being a “lame duck” president. She believes Trump may view cryptocurrencies, particularly Bitcoin, as a means to ensure a productive final term in office.

Wood’s remarks reflect the growing influence of the crypto sector in U.S. politics. Over the past election cycle, figures in the cryptocurrency industry have played a significant role in political campaigns, often supporting candidates who are in favor of blockchain technology. Trump’s administration has received substantial support from prominent crypto figures, with some endorsing him and contributing directly to his campaign.

As part of his administration’s focus on crypto, Trump signed two executive orders that laid the foundation for a national cryptocurrency stockpile. This move was accompanied by the formation of a working group focused on cryptocurrency policy, chaired by David Sacks. These actions demonstrate Trump’s commitment to creating a framework that supports the crypto industry and includes the possibility of Bitcoin holdings.

The Future of the Bitcoin Reserve

The Bitcoin reserve order, established by Trump’s administration, regards confiscated Bitcoin as a strategic national asset. The Treasury Department is responsible for overseeing this reserve and exploring potential budget – neutral strategies for acquiring more Bitcoin. However, as of now, no direct purchases have been made to add Bitcoin to the reserve.

Sacks’ working group has recommended that the (CFTC) be given the authority to regulate spot markets for non – security digital assets. It has also called for the creation of a Bitcoin reserve managed by the Treasury, with funding coming solely from forfeited digital assets. If this plan progresses, it could pave the way for further Bitcoin purchases to secure the national reserve.

With crypto policies being developed in several U.S. states, the federal government’s actions will likely have long – term implications for the national reserve. States like Florida and Texas have already begun working on similar legislation to create their own crypto stockpiles.