$BTC Bitwise Asset Management Chief Investment Officer Matt Hougan also reassured that the establishment of Bitcoin reserves reduces the likelihood of the government trying to eliminate the asset and greatly increases the chances of other countries adopting Bitcoin as a strategic reserve.
However, Charles Edwards, founder of hedge fund Capriole Investments, pointed out that this executive order is almost the worst outcome the industry could have anticipated; if there are no new purchasing plans, then the so-called reserves are just 'a pig dressed up nicely'.
An important reason for the market's dissatisfaction with the Bitcoin strategic reserve is that the Bitcoin in this reserve will be entirely composed of Bitcoin seized by the U.S. government from criminal and civil cases. This means that the U.S. government will not purchase any additional Bitcoin.
According to Arkham Intelligence, the U.S. currently holds approximately $17 billion worth of Bitcoin, but this figure has not been audited by the U.S. government.
David Sacks, the cryptocurrency czar appointed by Trump, added that the U.S. Secretary of the Treasury and the Secretary of Commerce also have the authority to devise budget-neutral strategies to acquire more Bitcoin, provided that these strategies do not increase the burden on American taxpayers.