Senator Cynthia Lummis is in the process of drafting a bill pertaining to a US Bitcoin reserve and has arranged a meeting on March 11 in Washington DC to engage with industry leaders, as stated by Bitwise CEO Hunter Horsley during this week’s segment on CNBC’s Fast Money.
In response to inquiries regarding the status of the potential creation of a strategic Bitcoin reserve in the US, given the perceived stagnation, Horsley affirmed that the idea is “definitely in play.”
“It’s one of the elements under consideration. It was included in Trump’s executive order shortly after his inauguration. It’s among the priorities on Treasury’s agenda,” Horsley remarked. “Senator Lummis is actively developing a bill concerning this.”
“She’s planning a gathering on March 11, where I and several other CEOs will convene in DC to discuss the initiative,” he added.
Horsley also highlighted the increasing adoption of Bitcoin globally, referencing the recent investment made by Mubadala Investment Company. In its latest filing with the SEC, Abu Dhabi’s sovereign wealth fund disclosed an investment of approximately $437 million into BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust.
Bitwise’s co-founder mentioned that about 11 countries now have some degree of Bitcoin exposure, reinforcing its legitimacy as a strategic asset.
“Believe it or not, it’s quite real,” he asserted.
Bitcoin has undergone fluctuations in recent weeks amid macroeconomic concerns, with BTC falling below $80,000 for the first time since November on Thursday.
When discussing Bitcoin’s price volatility, Horsley acknowledged it as a known trait of the digital asset, yet it continues to catch people off guard.
He pointed out that historically, the first quarter has proven to be the best time for investors to enter the Bitcoin market, a trend observed by Bitwise among its clients.
Horsley also forecasted that an increasing number of traditional investors, including wealth managers, asset managers, and banks, will engage with Bitwise’s Bitcoin ETF and the broader asset class during this period of price fluctuations.
“I think price is always a significant narrative in this space. If you recall when the Bitcoin ETF launched, it dropped from $46,000 to $39,000, leading some to suggest it was a buy the rumor, sell the news scenario,” Horsley explained.
“Then it eventually rebounded to more recent levels. So I believe…there’s never been a more opportune moment for this asset class,” he added.
While he acknowledged the focus on price, Horsley believes that regulation is currently the most vital narrative within the Bitcoin market.
The regulatory landscape for digital assets has shifted positively, as highlighted by the SEC’s recent dismissal of enforcement actions against Coinbase and Uniswap, which Horsley described as a noteworthy development.
“The narrative right now is regulation. It’s the most apparent issue. We’re witnessing a significant shift since the inauguration. The White House, Congress, and the SEC have all transitioned to a constructive stance that has never been seen before,” Horsley remarked.
“It’s almost unimaginable to think of Washington DC being favorable towards Bitcoin and crypto,” he concluded.
