ARK Invest’s Cathie Wood: US May Soon Purchase Bitcoin for Reserve

TLDR

• Cathie Wood believes the US government may begin purchasing Bitcoin for its national strategic reserve.
• The Trump administration has focused on confiscated Bitcoin but may shift to direct purchases.
• Wood points out that Trump’s growing ties to the crypto industry could influence his support for Bitcoin.
• The formation of a national Bitcoin reserve aligns with Trump’s push to support the cryptocurrency sector.
• Several US states, including Florida and Texas, are working on similar crypto stockpile legislation.

Cathie Wood, founder of ARK Invest, believes that the U.S. government may soon begin purchasing Bitcoin to add to the national strategic reserve. This comes after the government has largely focused on confiscating Bitcoin, as opposed to directly buying it. In a recent episode of the “Bitcoin Brainstorm” podcast, Wood stated that the Trump administration might take action on this matter soon.

Wood suggests that the federal government has shown some reluctance in directly acquiring Bitcoin for the strategic reserve. According to her, the original plan for the reserve, established shortly after President Trump’s second term began, was to own 1 million bitcoins. She argued that the government might soon shift its strategy to begin purchasing Bitcoin rather than relying solely on seized assets, as these Bitcoin holdings were not part of the initial acquisition strategy.

Wood also mentioned that Trump’s personal interests in the cryptocurrency space could influence his support for Bitcoin acquisition. She pointed out that the crypto community played a significant role in Trump’s 2016 presidential victory. Furthermore, she argued that Trump’s family has a growing stake in the success of the cryptocurrency industry, which could be a motivating factor behind continued support for Bitcoin.

Donald Trump’s Continued Support for Crypto

Cathie Wood explained that President Trump’s support for cryptocurrencies may continue, especially given the political and economic benefits. Wood noted that Trump would likely want to avoid being a “lame duck” president, as he approaches the final stages of his presidency. She believes Trump may see cryptocurrencies, particularly Bitcoin, as a way to secure a productive final term in office.

Wood’s comments 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 favor blockchain technology. Trump’s administration has received considerable backing 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 establishing the foundation for a national cryptocurrency stockpile. This move was complemented by the formation of a working group focused on cryptocurrency policy, chaired by David Sacks. These actions reflect Trump’s commitment to creating a framework that supports the crypto industry and includes the potential for Bitcoin holdings.

The Future of the Bitcoin Reserve

The Bitcoin reserve order, established by Trump’s administration, treats confiscated Bitcoin as a strategic national asset. The Treasury Department is tasked with 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 Commodity Futures Trading Commission (CFTC) gain authority to regulate spot markets for non-security digital assets. It also called for the creation of a Bitcoin reserve administered by the Treasury, with funding sourced solely from forfeited digital assets. If this plan moves forward, it could pave the way for further purchases of Bitcoin to secure the national reserve.

With crypto policies taking shape 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.

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