In news that likely seemed impossible when bitcoin was born 16 years ago, President-elect Trump pitched the idea of the U.S. establishing a strategic reserve comprising the digital currency. These headlines sent the largest cryptocurrency to record highs on Monday.
Predictably, spot bitcoin ETFs like the VanEck Bitcoin ETF Trust (HODL) are benefiting from the surge. HODL and its peers debuted in January 2024. They immediately become among the most successful new ETFs of all-time. For its part, HODL had $1.39 billion in assets under management as of Dec. 13.
Interested investors should keep an eye on that AUM tally. That’s because the ETF’s annual fee is waived until it hits $2.5 billion. Once that happens, all cash that arrives into the fund above $2.5 billion is subject to the expense ratio, or until HODL has $2.5 billion in assets. That expense ratio is waived until Jan. 10, 2026.
Examining Bitcoin Reserve Catalyst
The incoming president told CNBC in a recent interview he’s considering establishing a U.S. bitcoin reserve comparable to the strategic petroleum reserve. Other politicians would like to see the U.S. begin stockpiling bitcoin as an avenue for fighting the country’s soaring debt.
“Republican senator Cynthia Lummis has introduced a bill to congress, entitled the Boosting Innovation, Technology and Competitiveness Through Optimized Investment Nationwide (BITCOIN) Act, which proposes the U.S. buy 1 million bitcoins over five years to reduce the spiraling $35 trillion U.S. national debt,” reported Bill Bambrough for Forbes.
The U.S. government acting as an active participant in the bitcoin market could be a credible upside catalyst. And it could be one that might benefit ETFs like HODL in the process.
Other world leaders, including Vladimir Putin, have signaled a willingness to embrace bitcoin amid fears Trump will attempt to manipulate the U.S. dollar. It remains to be seen if that will happen. But it is clear the president-elect has overtly signaled to the crypto community he’s pro-digital assets.
“Trump this month named a White House czar for artificial intelligence and cryptocurrencies, former PayPal executive David Sacks, a close friend of Trump adviser and megadonor Elon Musk,” reported Reuters. “Trump also said he would nominate pro-crypto Washington attorney Paul Atkins to head the Securities and Exchange Commission (SEC).”
For more news, information, and analysis, visit the Crypto Channel.