Trump's Crypto Reserve Plan Jump Starts Crypto ETFs
Cryptocurrency markets respond to the president's sweeping plan for government holdings of Bitcoin, Ethereum, XRP, Solana and Cardano.
President Donald Trump revealed plans Sunday to create a strategic crypto reserve that will include Bitcoin, Ethereum, XRP, Solana and Cardano.
Bitcoin briefly jumped above $95,000 following the announcement before pulling back to around $90,000 as of Monday afternoon, according to CoinMarketCap data.
The top bitcoin exchange-traded funds (ETFs) by assets, the iShares Bitcoin Trust (IBIT) and the Fidelity Wise Origin Bitcoin Fund (FBTC), gained about 7% on Monday.
The announcement marks a potential shift in the U.S. government's approach to digital assets, which could reshape the crypto investment landscape.
Trump shared his plans through a post on Truth Social, announcing an executive order to create a U.S. Crypto Reserve that includes XRP, SOL, and ADA, and commenting that he will make sure the U.S. "is the Crypto Capital of the World."
In a follow-up post, the president added, "And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be the heart of the Reserve. I also love Bitcoin and Ethereum!"
The news triggered weekend price increases across the crypto market, though gains moderated by Monday. Ethereum is down 9.1% in 24 hours, while XRP shows a 9.8% loss and Cardano's ADA is off 7%, as of Monday afternoon.
Crypto ETFs React
Crypto-related ETFs, however, held on to some of the weekend's gains. According to etf.com data, the iGrayscale Bitcoin Trust ETF (GBTC) climbed 7%, while the iShares Ethereum Trust (ETHA) gained 2.4%.
First Trust’s SkyBridge Crypto Industry and Digital Economy ETF (CRPT) rose 1.5%, according to etf.com data. The fund holds 11.6% in Coinbase (COIN) stock, which traded flat on Monday.
The Bitwise Crypto Industry Innovators ETF (BITQ) gained 1%, boosted by its 9.2% allocation to MicroStrategy (MSTR), which climbed 2.2%.
The Adaptiv Select ETF (ADPV) increased 1.3%, despite its 6.1% position in Robinhood (HOOD), which saw shares fall 1.3%, according to etf.com data.
The White House is scheduled to host its first Crypto Summit this Friday, March 7, where additional details about the strategic reserve may emerge.
