The first cryptocurrency has found another ally in the traditional financial sector after a respected global investment firm confirmed its support for making it Bitcoin Strategic reserve.
The backing of VanEck, a respected name in the investment sector, in Bitcoin shows the currency’s growing appeal even to traditional financial players, a remarkable achievement that could benefit the entire cryptocurrency space.
Bitcoin as a strategic reserve
Well-known asset management firm VanEck announced that it will abandon its support for Bitcoin, saying that it will defend US President-elect Donald Trump’s plan to convert cryptocurrencies into digital currency. National Strategic Reserve.
Matthew Siegel, head of digital asset research at VanEck, issued the official announcement of the investment firm’s position on the idea, committing himself to supporting Trump’s proposal.
For immediate release:
VanEck endorses the Bitcoin Strategic Reserve.
No “sources” needed – we’ll just tell you ourselves. https://t.co/ZO28dqiBqC
– Matthew Siegel, Recovering CFA (@matthew_sigel) November 19, 2024
VanEck will join fellow international asset manager BlackRock in growing support for the US Strategic Bitcoin Reserve, another positive development in the intensifying discussion about the role of digital assets in US economic policy.
It can be recalled that in 2017, the global asset management company was a leader in pushing for the creation of a futures Bitcoin exchange-traded fund (ETF) in the country.
As of the time of writing, VanEck owns over 13,000 Bitcoin with an estimated value of over $1.2 billion.
Trump’s vision on cryptocurrencies
During an election campaign last July, Trump revealed his vision to make the United States the most successful country in the cryptocurrency sector, announcing his plan to create a “strategic national stockpile of Bitcoin” in the country.
Trump said he plans to make it a policy to hold all bitcoins that the US government “currently owns or acquires in the future,” adding that this bitcoin stash will become the core of the Strategic National Cryptocurrency Reserve.
During his election campaign, Trump promised cryptocurrency players and investors that he would defend the sector and advocate for its liberalization. The entire cryptocurrency space now depends on the next president to fulfill this commitment during his administration.
Image: Securities.io
BTC reserve gains support
Earlier this week, Satoshi Action Fund (SAF) co-founder and CEO Dennis Porter confirmed that leading asset manager BlackRock would support the Bitcoin Strategic Reserve concept.
Porter believes that the Trump government will push for an executive order that would create a Bitcoin reserve, providing an optimistic outlook on the future of the Alpha cryptocurrency.
He added that the first step to making this reserve a reality is to appoint a “pro-bitcoin Treasury Secretary” who can begin creating the strategic reserve.
Moreover, Wyoming Republican Senator Cynthia Loomis He introduced proposed legislation that would be key to the concept of a Bitcoin Strategic Reserve.
Loomis urged the US Congress to pass the Enhancing Innovation, Technology, and Competitiveness through Optimal Investment Nationwide (BITCOIN) Act.
If the Loomis bill is enacted, all bitcoins owned by the US government will be preserved and not sold. Current estimates showed that the US government owns 69,370 bitcoins worth $6.4 billion.
Featured image from Reddit, chart from TradingView
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