In recent research report, broker Bernstein highlighted that the U.S. crypto task force will focus on the launch a national bitcoin reserve, a move that could spark similar initiatives around the globe.
“A creation of a U.S. bitcoin reserve could lead to a global race amongst sovereigns to buy bitcoin as one of the reserve assets,” analysts led by Gautam Chhugani noted. Notably, The report highlights several key questions about the creation of a strategic reserve.
Fed To Sell Gold To Fund BTC Purchases?
The report raises key questions about whether the U.S. Federal Reserve or the Treasury would take on the task of buying bitcoin. If the Fed is involved, it would need approval from lawmakers. It also explores how the Fed would fund such a move, with Bernstein suggesting the Fed could either issue debt or sell some of its gold reserves to finance cryptocurrency purchases.
Furthermore, the report also suggests that the U.S. government could include the $20 billion in bitcoin seized from criminal enterprises to any national reserve.
Recently, the Trump administration has also revealed plans to create a sovereign wealth fund (SWF), Bernstein remarked that such a fund would view key U.S. crypto companies and market leaders as strategic assets worth investing.
The asset manager has advised investors to position themselves for the next phase of the bull market across bitcoin and bitcoin linked equities.
