President Trump followed a popular campaign promise this month. The signature of Executive Order 14233 on March 6 aims to establish an official strategic Bitcoin reserve and another digital asset stockpile after laying the foundation for a strategic reserve of cryptocurrency holdings in its previous commitment.
Many crypto investors wanted a truly game-changing strategic reserve. (Cryptography: BTC) Other digital assets. The executive order did not accurately fulfill these bullish hopes, and the market response for the time being was largely negative. Meanwhile, these two digital asset strategies can ultimately prove to have some added force.
Next, we will introduce three important details of Executive Order 14233. Perhaps he didn’t pop out at you after reading the headline. Bitcoin investors should pay more attention than others, but that’s also quite the news for Ethereum (Encryption: ETH) and XRP (Cryptography: XRP) Owner.
The idea of mirroring US gold reserves for Bitcoin (and perhaps other digital assets) sounds like a big deal. However, gold holdings such as Fort Knox are not that big. The total amount of all federal ownership gold was about $11 billion in February, according to data from the Treasury itself.
To make that gold look into context, there are currently three Bitcoin-based ExchangeTraded Funds (ETFs) with over $11 billion in Bitcoin in each portfolio.
Bitcoin ETF
Managed assets (AUM)
Three-month fund flow
iShares Bitcoin Trust ETF (NASDAQ: IBIT)
$48.2 billion
8%
Fidelitywise Origin Bitcoin Fund (nysemkt:fbtc)
$16.5 billion
(5.2%)
Grayscale Bitcoin Trust (NYSEMKT: GBTC)
$16.3 billion
(8.1%)
Data collected from Finviz.com on March 21, 2025.
If the US dollar is directly based on the value of gold holdings, the gold reserves will be large, but that is no longer the way the dollar works. The country began to be reduced from the gold standard in 1933, and completed its journey to Fiat currency in 1973. Since then, the dollar has not been linked to physical assets and has become a Fiat currency with more direct government control of its effective value.
Therefore, the gold reserve has nothing to do with the value of the US dollar. Also, according to several sources, it is currently a rather small portion of the world’s gold reserves, currently worth around $20 trillion. ETFs already control 5.5% of the cryptocurrency market value, a $11 billion drop in the Golden Sea.
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In other words, it may be incorrect to expect price-changing effects from any version of the Strategic Bitcoin Reserve. These reserves are not that big. Private investment flowing through ETFs appears to have a stronger price fluctuation effect on Bitcoin than government efforts.
The unnamed cryptocurrency Bitcoin is located in the domain of individual digital asset stockpiles. This portfolio is entrusted with collecting non-Bitcoin crypto coins currently held by a portion of the Treasury, and has been added only as a result of legal proceedings. To be clear, the Ministry of Finance manages Altcoins in one central portfolio, but will not actively purchase any more Ethereum, Litecoin (Cryptography: LTC)XRP, Solana, or Stablecoins. The addition to this stockpile comes from criminal or civil court cases.
Solana and XRP investors were hoping for a more aggressive purchasing program, and the coin price hanged sharply as soon as Trump signed the executive order.
XRP price data by YCHARTS.
There is no bullish insight to share about digital asset stockpiles, but strategic Bitcoin reserves may have the power to raise prices in the end. If Bitcoin continues to rise in value over the long term, the Treasury can reassign many forms of monetary holdings to this new asset class.
I’ve already talked about a limited scale of that resource, but selling some gold is one option.
The Ministry of Finance also has approximately $24.1 billion in euro and euro-denominated securities, with similar assets of $13.7 billion measured in Japanese yen. Together, it is a foreign currency reserve of approximately $36.8 billion that can be moved to a Bitcoin bucket.
It also manages the International Monetary Fund (IMF)’s $27.2 billion reserve, not to mention the incredible $170.7 billion rights (SDR) of special drawing rights (SDR) over the IMF’s basket of major international currencies. These baskets of money are similar to savings accounts on the scale of Global Finance.
I’ve heard of other asset reserves, but they are not a serious part of the strategic Bitcoin Reserve Discussion, as they are often out of the Treasury control.
The Department of Energy had about 396 million barrels of oil in the Strategic Oil Reserve on March 14th. Although recent oil prices are worth around $27 billion, they are not assets owned by the Treasury Department. Similarly, £1.4 billion of surplus cheese in long-term cold cave storage is worth $7.8 billion in the open market.
It’s a drift of my drift, although it’s a lot of extra oil and literally government cheese, the market is flooded with prices. The USDA owns cheese caves, and the USDA is not mentioned in Executive Order 14233, and whether it withdraws most of the US financial reserves from the IMF or whether the Treasury is moving funds to a promising new asset class like Bitcoin, could lead to a global economic crisis.
Therefore, Bitcoin purchasing programs on a market-moving scale must be meticulous for a long time and do not expect a massive overnight price rise. But here there are some slow burns that raise prices – soaking in national oil and cheese reserves isn’t an option.
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Anders Bylund has positions in Bitcoin, Ethereum, Grayscale Bitcoin Trust (BTC), and XRP. Motley Fool has Bitcoin, Ethereum and XRP positions and is recommended. Motley Fools have a disclosure policy.
Three important things to know about the Strategic Bitcoin Reserve were originally published by The Motley Fool
