U.S. Government Plans Strategic Crypto Reserve Including XRP, BTC, ETH
A U.S. crypto strategic reserve is becoming more likely following President Trump's recent announcement, according to Citi's research report. Key points include:
- Assets designated for the reserve include XRP, solana, cardano, bitcoin, and ether.
- The U.S. government currently holds approximately $19 billion in cryptocurrencies, primarily in bitcoin, compared to $750 billion in gold.
- Most of these holdings come from seizures, suggesting that future purchases of other digital assets might be funded through open-market transactions.
- Citi noted unclear selection criteria for which tokens will be included in the reserve, indicating that pre-announcing investments can negatively impact prices.
- Broker Bernstein suggested that the Federal Reserve could issue debt or sell some gold reserves to finance cryptocurrency acquisitions.