According to Matt Hougan, the chief investment officer at Bitwise, US President Donald Trump’s planned cryptocurrency reserve will primarily consist of Bitcoin, despite the inclusion of various large-market cap altcoins.
“Market participants have reacted negatively to the announcement, as it mentioned more than just Bitcoin for the proposed reserve,” Hougan noted in a market update on March 5. “The mention of smaller-cap assets created unnecessary confusion.”
On March 2, Trump initially indicated that the reserve would encompass Solana SOLUSD, XRP 
XRPUSD, and Cardano (ADA), later emphasizing that Bitcoin 
BTCUSD and Ether 
ETHUSD would serve as the “core” of the reserve. Hougan stated:
“Once everything stabilizes, I predict that the final reserve will be almost entirely Bitcoin, and it will be bigger than most people expect.”
Initially, Bitcoin’s price surged following the news of its inclusion in the anticipated reserve, but it later fell below $83,000 and has only recently climbed back above $90,000, partly due to Trump postponing auto parts tariffs on Canada and Mexico.
Concerns have arisen among some crypto commentators regarding Trump’s shift away from a Bitcoin-only reserve, arguing that Bitcoin is the only cryptocurrency suitable for such inclusion. Coinbase CEO Brian Armstrong has referred to it as “a successor to gold.”
“The inclusion of speculative assets like Cardano seems more calculated than strategic,” Hougan remarked. He further commented that “despite the imperfect rollout,” he believes the market is “misinterpreting the situation,” adding:
“Ultimately, this is a positive sign.”
Hougan suggested that, similar to tariffs, Trump’s initial proposals are rarely his final decisions. Input from key industry figures at the forthcoming White House crypto summit could alter the reserve’s composition.
Commerce Secretary Howard Lutnick has implied that Bitcoin might receive a unique status within the reserve, stating that “other crypto tokens will likely be treated differently — favorably, but differently.”
Hougan also mentioned that while there’s a small, albeit unlikely, chance that opposition could result in the reserve being abandoned or limited to assets the government has already confiscated, the establishment of a US cryptocurrency reserve could inspire other nations to seek their own portions of Bitcoin.
Furthermore, it’s improbable that the US will sell any crypto it acquires, even if a Democrat succeeds Trump. Hougan remarked that any cryptocurrencies “will likely be held for an extended period,” similar to the nation’s gold reserves.
“Democratic leaders will want to avoid alienating voters for minimal gain,” he stated.
“A considerable number of people support crypto, while a relatively small group dislikes it,” Hougan added. “This was evident in the last election, where the GOP’s outreach to crypto enthusiasts garnered them many votes, while Democratic opposition gained few.”
Hougan concluded that the market’s initial optimism “appears to be the correct response […] I believe the market will come to recognize that.”
