The firstborn cryptocurrency has found a new ally in the traditional financial sector after a respected global investment firm confirmed its support for its creation Bitcoin a strategic reserve.
The backing of VanEck, a respected name in the investment industry, in Bitcoin shows the growing appeal of the coin even for traditional financial players, a notable milestone that could benefit the entire crypto space.
Bitcoin as a strategic reserve
Well-known asset manager VanEck announced its support for Bitcoin, saying it will advocate for newly-elected US President Donald Trump’s plan to make it a cryptocurrency. national strategic reserve.
Matthew Sigel, head of digital asset research at VanEck, made the official announcement of the investment firm’s position on the idea, committing to defend Trump’s proposal.
FOR IMMEDIATE RELEASE:
VanEck endorses strategic Bitcoin reserve.
No ‘resources’ are needed; we’ll just tell you ourselves. https://t.co/ZO28dqiBqC
— Matthew Sigel, recovering CFA (@matthew_sigel) November 19, 2024
VanEck will join fellow international asset manager BlackRock in the growing following of the US Strategic Bitcoin Reserve, another positive development in the intensifying discussion about the role of digital assets in US economic policy.
It may be recalled that in 2017, the global asset management firm pioneered the push for a future-based BTC exchange-traded fund (ETF) in the country.
At the time of writing, VanEck owns over 13,000 BTC with an estimated value of over $1.2 billion.
Trump’s view on crypto
During a campaign last July, Trump unveiled his vision to make the US the most successful nation in the world cryptocurrency sector, announcing his plan to create a “strategic national Bitcoin stockpile” in the country.
Trump said he plans to make it a policy to retain in the future all Bitcoin that the US government “currently owns or acquires,” adding that this BTC supply will become the core of the strategic national crypto reserve.
During his campaign, Trump promised cryptocurrency players and investors that he would defend the sector and advocate for its deregulation. The entire crypto world is now counting on the new president to keep this promise during his administration.
Image: Securities.io
BTC Reserve receives support
Earlier this week, Dennis Porter, co-founder and CEO of Satoshi Action Fund (SAF), confirmed that leading asset manager BlackRock will support the strategic Bitcoin reserve concept.
Porter believes that the Trump administration would push for an executive order that would establish the BTC reserve, which would provide an optimistic view of the future of the alpha crypto.
He added that the first step to make this reserve a reality is to appoint a “pro-Bitcoin Finance Minister” who can initiate the creation of the strategic reserve.
Moreover, Republican Senator from Wyoming Cynthia Lummis introduced proposed legislation that would be key to the strategic Bitcoin reserve concept.
Lummis urged the U.S. Congress to pass the Boost Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act.
If Lummis’ bill passes, all Bitcoin owned by the US government would have to be held and not sold. Current estimates show that the US government owns 69,370 BTC worth $6.4 billion.
Featured image from Reddit, chart from TradingView