Trump’s Bitcoin Reserve Order Removes “Last Existential Risk,” Says Bitwise CIO
Bitwise Chief Investment Officer Matt Hougan believes President Donald Trump’s recent executive order to establish a U.S. Strategic Bitcoin Reserve has eliminated the final major threat to Bitcoin’s long-term viability.
According to Hougan, this move solidifies Bitcoin’s standing as a credible financial asset and removes the lingering fear of government crackdowns.
Bitcoin Now Offers Best Risk-Adjusted Return in Its History, Says Bitwise CIO
In a note to clients, Hougan recalled his first exposure to Bitcoin in 2011 when the cryptocurrency was trading at just $1. Despite its potential, he described the early days as fraught with risk — unreliable trading platforms, custody issues, and regulatory uncertainty.
Today, however, Hougan argues that Bitcoin offers the most attractive risk-adjusted return in its history. Over the years, key developments have reduced Bitcoin’s early vulnerabilities. The launch of Coinbase, institutional custodians like Fidelity, and the approval of spot Bitcoin ETFs have provided the asset with structure and legitimacy.
Yet, one concern remained: whether the U.S. government might attempt to ban Bitcoin, as it once did with gold in 1933. That fear, Hougan said, has now been put to rest. On March 6, Trump signed an executive order creating a Strategic Bitcoin Reserve, utilizing approximately 200,000 BTC previously seized in legal proceedings.
Of this, around 103,500 BTC is expected to be held long term, as some of the seized coins will be returned to victims of crimes, including 94,636 BTC from the Bitfinex hack. Trump also instructed Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick to explore budget-neutral strategies for acquiring additional Bitcoin, such as using Treasury surplus funds or revaluing gold certificates — all without increasing taxpayer costs.
“Just like that, the last existential risk to Bitcoin vanished,” Hougan wrote. He argued that if the dollar’s dominance were ever seriously threatened, Bitcoin would be a better fallback than alternatives like the Chinese yuan. “It’s the best backup plan on the market,” he said.
While most clients allocated about 1% to crypto two years ago, Hougan says that has now grown to 3%, with expectations it could soon reach 5% or more as confidence continues to rise.
41 Bitcoin Reserve Bills Emerge Across 23 States
The adoption of Bitcoin has also found momentum state-wide in the U.S. According to Bitcoin Laws, 41 Bitcoin reserve bills have been introduced in 23 states, with 35 still under consideration. Just recently, Kentucky Governor Andy Beshear officially signed House Bill 701, known as the “Bitcoin Rights” bill, into law—making the state one of the latest to enact legislation protecting digital asset users and operations.
Other states are making similar moves. Oklahoma’s Strategic Bitcoin Reserve Act (HB 1203), introduced by Representative Cody Maynard, recently passed the House with a 77-15 vote and is awaiting a Senate decision. According to Bitcoin Laws, Oklahoma now ranks alongside Texas in second place in the race to establish state-level Bitcoin reserves.
Missouri is also in the mix, with its Special Committee on Intergovernmental Affairs reviewing its own Bitcoin reserve proposal. Likewise, two key Bitcoin bills in Arizona cleared the House Rules Committee on March 24.