US Bitcoin Reserve Could Reshape Global Finance – Bitwise Head of Research

Ryan Rasmussen, head of research at Bitwise Asset Management, believes a US strategic Bitcoin (BTC) reserve could transform the global financial landscape.

In a March 7 post on X, he outlined why such a move would accelerate Bitcoin adoption, strengthen its legitimacy, and eliminate fears of a government crackdown.

“The end game was never ‘the US government buys all of the world’s Bitcoin,’” Rasmussen wrote. Instead, he argued, the creation of a national Bitcoin reserve would trigger a ripple effect, forcing other countries, financial institutions, and investment funds to follow suit.

The end game was never “the U.S. government buys all of the world’s bitcoin.”

A U.S. Strategic Bitcoin Reserve means…
– Other countries will buy bitcoin
– Wealth managers have no excuse
– Financial institutions have no excuse
– Pensions/Endowments have no excuse
– Fear of the… https://t.co/iAoyeo3PYL

— Ryan Rasmussen (@RasterlyRock) March 7, 2025

A Tipping Point for Bitcoin?

Rasmussen highlighted several key implications of the US holding Bitcoin in its reserves. First, he suggested that other governments would likely start accumulating Bitcoin in response. If the US officially recognizes Bitcoin as a strategic asset, it could encourage international adoption.

Second, he pointed to a shift in the financial industry. Wealth managers, financial institutions, pensions, and endowments would no longer have a reason to avoid Bitcoin. Many of these entities have hesitated to invest in digital assets due to regulatory uncertainty. But if the US government holds Bitcoin, that hesitation may disappear, according to Rasmussen.

Third, Rasmussen argued that market fears about the US selling off Bitcoin and causing price instability would no longer be a concern. Instead, he believes the US would likely continue to accumulate Bitcoin, reinforcing confidence in the asset. He also suggested that if the US adopts a Bitcoin reserve, the possibility of a government ban on Bitcoin would be “definitively zero.”

A Global Domino Effect?

Matt Hougan, chief investment officer (CIO) at Bitwise, also agrees that a Bitcoin reserve could have far-reaching implications beyond the US. In his own analysis published on March 4, Hougan stated that if the US acknowledges Bitcoin as a strategic asset, other countries may feel pressure to follow suit.

“Other countries are now more likely to buy,” Hougan said, adding:

“While markets worry about the US political response to the five-asset proposal, it’s important to remember that the most important consumers of this news are not here in the US, but abroad.”

According to Hougan, a US Bitcoin reserve could spark a “global race” as nations position themselves for Bitcoin’s rise as a major monetary asset. He pointed out that countries like El Salvador, Bhutan, and Abu Dhabi have already acquired Bitcoin, and there are rumors that others are quietly doing the same.

“If you are Honduras, Mexico, or Guatemala, and you’re watching El Salvador and now the US acquire Bitcoin, can you really afford to be at zero? If you’re Dubai, Qatar, or Saudi Arabia, are you comfortable with Abu Dhabi and the US taking the lead? What about Russia? China?”

Assuming some version of the U.S. reserve comes through, it’s hard to imagine that other national dominoes will not fall.

If you are Honduras, Mexico, or Guatemala, and you’re watching El Salvador or the U.S. acquire bitcoin, can you really afford to be at zero?

— Bitwise (@BitwiseInvest) March 5, 2025

Trump Signs Executive Order for Strategic Crypto Reserve

On March 6, US President Donald Trump signed an executive order to establish a strategic cryptocurrency reserve using tokens already owned by the government.

According to White House crypto czar David Sacks, a billionaire entrepreneur and investor, the newly created “Strategic Bitcoin Reserve” will be funded with Bitcoin seized through criminal and civil asset forfeiture cases. “This means it will not cost taxpayers a dime”, he added.

In his post on X, Sacks also confirmed that the government would not initially buy additional Bitcoin but left the door open for future acquisitions.

Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.

The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…

— David Sacks (@davidsacks47) March 7, 2025

Sacks also ordered a full accounting of the federal government’s existing crypto reserves, which he estimated at 200,000 Bitcoin alone. That’s worth around $17.9 billion at the current price of $89.405 per Bitcoin.

A White House factsheet stated that the Commerce and Treasury Secretaries are authorized to explore budget-neutral strategies for acquiring more Bitcoin, as long as they do not impose additional costs on American taxpayers.