Cathie Wood Says US Gov't May 'Start Buying' to Stock National Bitcoin Reserve

ARK Invest founder Cathie Wood said the U.S. government may soon start purchasing Bitcoin to stock a national strategic reserve. She cited political and strategic motivations, including President Trump's interest in maintaining political relevance and supporting a key industry. The reserve, established via executive order in late 2025, has yet to make direct purchases beyond seized assets.

Wood noted that the administration's reticence to purchase BTC could change as Trump seeks to avoid a 'lame duck' scenario. The reserve, modeled after a national gold stockpile, aims to hold 1 million bitcoins by executive mandate. Current holdings are limited to assets acquired via confiscation.

Several U.S. states, including Florida and Texas, are also pursuing similar initiatives. Florida's proposed reserve would be managed by the state's chief financial officer and limited to cryptocurrencies with a minimum $500 billion market cap over the last two years. This effectively restricts the fund to Bitcoin.

Why Did This Happen

The U.S. government's reserve is part of a broader political strategy. Trump's administration has emphasized crypto-friendly policies, including executive actions on stablecoins and Bitcoin stockpiles. The administration has hosted crypto-related events and collaborated with firms like Coinbase, Tether, and Ripple.

Cathie Wood pointed to the influence of the crypto industry in Trump's re-election. Executives and investors in the sector have contributed to campaigns and political action committees. The administration has also pushed for regulatory clarity, including the GENIUS Act, which formalizes stablecoin rules.

How Markets Responded

Recent market trends show continued institutional interest in Bitcoin. U.S. spot ETFs recorded their largest single-day inflow since October 2025, with $697 million added last week. Strategy Inc. also bolstered its Bitcoin holdings, purchasing 1,287 BTC and increasing its USD reserve to $2.25 billion.

Tether, the world's largest stablecoin issuer, added nearly $800 million in Bitcoin to its treasury in Q4 2025. This follows a policy of allocating up to 15% of quarterly profits to BTC, reinforcing its position as one of the largest corporate holders.

What Analysts Are Watching

Analysts are closely monitoring whether the U.S. government will begin active purchases. The reserve's initial focus has been on seized assets, but Wood anticipates a shift toward direct acquisition. The reserve's working group, led by Special Advisor David Sacks, has suggested budget-neutral strategies for expanding holdings.

Florida's proposed reserve could pass as early as July 2026, while Texas has already made a $5 million purchase using a BlackRock ETF. This competition between states highlights growing institutional interest in Bitcoin as a strategic asset.

The crypto community is also watching for potential tax reforms. Wood mentioned that Trump's administration may push for a de minimis tax exemption for small crypto transactions. This could lower barriers to adoption and encourage broader use.

Investors are weighing the implications of these developments. With Bitcoin trading near $93,000, the market is showing resilience amid thin liquidity and uneven risk appetite. Institutional inflows and corporate purchases are seen as bullish indicators.