The idea of establishing a strategic Bitcoin reserve in the US might be more significant than the 2024 ETF launches. CoinShares and industry experts assess the potential impact of this move.
The Bitcoin Act: Initiative and Support
In 2024, US lawmakers proposed the Bitcoin Act to direct the US Treasury to create a 'strategic Bitcoin reserve' by acquiring 1 million BTC over 5 years. President-elect Donald Trump endorsed the plan, which is yet to be enacted.
Institutional Interests and Actions
Passing the Bitcoin Act could significantly reduce the stigma faced by institutional investors by granting Bitcoin the endorsement of the world's largest government.
Future Prospects and Possible Outcomes
Enacting the Bitcoin Act could further propel institutional interest in cryptocurrency, potentially driving Bitcoin's price above $1 million per coin, as noted by Adam Back, co-founder and CEO of Blockstream.
The establishment of a strategic Bitcoin reserve in the US could have a profound effect on cryptocurrency markets and reinforce institutional investor confidence.
