U.S. Bitcoin Reserve Holds 200K BTC—Will Other Nations Follow?

The U.S. government’s establishment of a Strategic Bitcoin Reserve is being totally ignored by the market, according to Ryan Rasmussen, head of research at Bitwise Asset Management.

This was signed into law by President Donald Trump on March 6 and makes Bitcoin an official national asset and will trigger institutional adoption.

The reserve is worth approximately $17 billion and is funded by 200,000 BTC seized through criminal and civil forfeitures. Unlike other government asset purchases, this doesn’t require taxpayer funding so it’s a costless way to store value long term.

Along with the U.S. Digital Asset Stockpile which includes other confiscated cryptocurrencies, the reserve is managed by the Treasury Department. This is a big shift towards putting digital assets into the national financial framework.

Corporate Bitcoin Holdings Surge in 2024

Rasmussen noted that corporate Bitcoin accumulation is accelerating fast, he said in 2024 alone public companies have bought twice as much BTC as in all previous years combined.

Key stats from his analysis:

  • 70+ public companies now hold $52 billion in BTC, that’s 3% of all Bitcoin.

  • Institutional adoption is happening as corporations are buying Bitcoin for the same reasons as retail investors: inflation hedging, long term store of value and financial independence.

Rasmussen believes the U.S. government formally embracing Bitcoin will remove the remaining barriers for pension funds, endowments and big financial institutions to get into digital assets.

Will Other Governments Follow the U.S. Lead?

A key takeaway from the U.S. Bitcoin Reserve is that it will push other countries to follow BTC. Rasmussen said this sets a precedent and makes it more likely other states and governments will start accumulating Bitcoin.

He also explained the long term implications:

  • The U.S. government won’t sell their Bitcoin anytime soon.

  • The probability of Bitcoin being outlawed in the U.S. is now zero.

  • States and foreign governments will start buying BTC.

As Bitcoin becomes a part of global finance, Rasmussen advises investors to “zoom out” and see the bigger picture. The U.S. Bitcoin Reserve might just be the catalyst for an international Bitcoin accumulation wave.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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