In a groundbreaking move, Matthew Sigel, the head of digital asset research at VanEck, a prominent asset management firm and crypto exchange-traded fund (ETF) issuer, has publicly endorsed President-elect Donald Trump’s groundbreaking proposal for a national strategic Bitcoin reserve. This endorsement comes at a pivotal moment for the future of cryptocurrency in the United States.
Major Financial Players Align
The conversation surrounding Bitcoin’s role in the US economy is reaching new heights, with notable figures like Dennis Porter, co-founder and CEO of the non-profit Satoshi Action Fund (SAF), echoing BlackRock’s support for this strategic initiative. Porter emphasized the Trump administration’s commitment to establishing this reserve via executive order, signaling a unified stance among leading financial players and policymakers on Bitcoin’s future trajectory.
Porter took to social media platform X, formerly known as Twitter, to outline a structured approach for creating the strategic Bitcoin reserve. He suggests that the process will commence with Trump appointing a pro-Bitcoin Treasury Secretary, setting the stage for significant policy shifts in favor of cryptocurrency adoption.
Key Steps for Establishing a US Strategic Bitcoin Reserve
Porter believes that the establishment of this reserve would begin with a decisive executive order from Donald Trump. The initial steps would involve halting the auction of Bitcoin assets currently managed by the US Marshals Service. Subsequently, the Treasury would absorb these Bitcoin holdings, integrating them into the Exchange Stabilization Fund.
Over time, the Treasury would continue to amass Bitcoin, enhancing the reserve’s strength. Porter also highlights the necessity of legislative backing, arguing that executive orders are susceptible to reversal. Therefore, it is vital for Congress to pass a formal bill, championed by pro-crypto Senator Cynthia Lummis, to solidify the strategic reserve’s foundation.
Market Reactions and Bitcoin’s Surge
The potential creation of a US strategic Bitcoin reserve has electrified the market, propelling Bitcoin to reach unprecedented heights, with a recent surge to an all-time high of $94,000. This surge underscores growing investor confidence and the anticipation that such governmental initiatives might trigger substantial buying pressure and further institutional embrace of Bitcoin.
Despite this remarkable ascent, Bitcoin has slightly retracted to $93,380 at the time of writing, still marking a substantial 40% increase over the past two weeks. This volatility reflects the dynamic and rapidly evolving nature of the cryptocurrency market.
