Cathie Wood, founder and CEO of ARK Invest, suggested that the Trump administration might go beyond holding seized bitcoin and start actively buying BTC to build a U.S. strategic reserve. She believes such a move could serve as a major signal to markets and other governments.
Speaking on ARK’s “Bitcoin Brainstorm” podcast on January 8, Wood described potential government buying as a possible turning point. She noted that institutional participation is still in its early stages and bitcoin’s limited supply is becoming harder to overlook.
“We have seen very little institutional buy-in—it is just beginning,” Wood said. “If the U.S., for example, not only adds confiscated bitcoin to a strategic reserve but also starts buying it openly—though we don’t know if that will happen—I think that could trigger what we’re all waiting for: scarcity value reasserting itself. We’re near 20 million bitcoin in circulation, with only about one million left to be mined.”
Wood indicated that so far, the administration’s approach has been limited to confiscated holdings. She contrasted this with what she called an earlier ambition to accumulate a large position, mentioning that “the original intent was to own a million bitcoin.” She added that a shift toward purchases seems plausible.
Wood tied this possibility to the political landscape ahead of the 2026 midterm elections, suggesting President Trump would want to maintain momentum and avoid becoming a lame duck.
“President Trump does not want to be a lame duck,” she said. “I think he will work with his crypto and AI advisor to take action… There seems to have been hesitation about actually buying bitcoin for the strategic reserve so far—it’s only been confiscated. I believe they will start buying.”
She also pointed to supportive constituencies around the president, arguing he has “all kinds of reasons” to embrace crypto, especially with midterm politics in mind.
When discussing how such purchases might work, Wood noted that any reserve strategy would likely need to be budget-neutral. While she didn’t specify a mechanism, she treated this as a key practical consideration.
Wood argued that explicit U.S. buying would not only impact domestic markets but could also push other countries to reconsider their reserve policies.
“We thought countries would adopt bitcoin much earlier than they have,” she said. “If the U.S. actually says, ‘Okay, now we’re going to buy,’ that could spur many other governments to think it through. Do they want to remain tied to the dollar? Probably not. So they might add bitcoin to their reserves.”
If this trend accelerates, Wood warned that emerging-market currencies could come under renewed pressure. She described a scenario where diversifying reserves into bitcoin increases volatility for weaker fiat currencies—a downstream effect of the U.S. moving from holding seized bitcoin to competing in the open market.
At the time of reporting, BTC was trading at $90,578.
Frequently Asked Questions
FAQs Cathie Wood Suggests Trump Could Add Bitcoin to US Reserves
1 Who is Cathie Wood and why is her opinion on this topic important
Cathie Wood is the founder and CEO of ARK Invest a prominent investment management firm known for its focus on disruptive innovation including cryptocurrency Her views are closely watched by investors and policymakers because of her firms deep research and influence in the tech and finance sectors
2 What exactly did Cathie Wood suggest
She publicly suggested that former President Donald Trump could consider proposing the addition of Bitcoin to the United States strategic reserves as a political and economic move ahead of the midterm elections
3 Why would adding Bitcoin to US reserves be significant
It would signal official US recognition of Bitcoin as a strategic national asset potentially boosting its legitimacy price and adoption globally It could also diversify the countrys reserves beyond traditional assets like gold dollars and Treasuries
4 Is this a realistic possibility or just a speculative idea
It is currently speculative While the idea has been discussed by some policymakers and economists any official move would require complex legislative and regulatory approval Cathie Wood presented it as a strategic suggestion not an imminent policy
5 What are the potential benefits for the US if it held Bitcoin in reserve
Potential benefits include hedging against inflation and dollar devaluation gaining early exposure to a growing asset class attracting crypto innovation to the US and potentially increasing the value of national reserves if Bitcoins price rises
6 What are the risks or drawbacks
Bitcoin is highly volatile compared to traditional reserves Its value can swing dramatically which could introduce instability There are also security concerns regulatory uncertainty and political opposition from those skeptical of cryptocurrency
7 How would the US actually acquire Bitcoin for its reserves
The Treasury or Federal Reserve could purchase Bitcoin on the open market through private transactions or potentially mine it This would be a major logistical and financial undertaking
8 Has any other country done something like this
Yes El Salvador made Bitcoin legal tender and holds it in national reserves Other countries like China and Russia have explored or implemented central bank