A new executive order from US President Donald Trump is expected to drive more investment into Bitcoin
Signed on March 6, the order establishes a US Strategic Bitcoin Reserve and a National Digital Asset Stockpile.
The document explains the reasoning behind the decision, “Because there is a fixed supply of BTC, there is a strategic advantage to being among the first nations to create a strategic Bitcoin reserve“.
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Managing director for digital assets at S&P Global Ratings, Andrew O’Neill, points out that the Bitcoin in the government’s reserve will mostly come from assets seized through legal actions. He describes the decision to hold Bitcoin as “mainly symbolic”, aimed at recognizing Bitcoin as a legitimate reserve asset.
However, the executive order does allow for the possibility of adding more Bitcoin to the reserve, but only if it can be done “in a budget-neutral manner”. This means the government would need to find a way to acquire Bitcoin without affecting spending plans.
Ryan Rasmussen, head of research at Bitwise, shared a post on X, stating that this action could set off a chain reaction, with more institutions and investors gaining confidence in Bitcoin. However, he clarifies:
The end game was never ‘the US government buys all of the world’s Bitcoin’.
With official backing, he argues that banks, pension funds, and investment firms now have fewer reasons to avoid Bitcoin.
According to Rasmussen, this also reduces the likelihood of Bitcoin facing future legal restrictions. “The probability the government outlaws Bitcoin is definitively zero”, he states.
Meanwhile, Bitwise’s Chief Investment Officer, Matt Hougan, recently shared his thoughts on President Trump’s crypto reserve. What did he say? Read the full story.
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