Cathie Wood: US Could Buy Bitcoin for Strategic Reserve

Cathie Wood’s analysis hinges on a critical distinction in government posture. She noted that, so far, the administration’s involvement with Bitcoin has been effectively limited to confiscated holdings. However, she contrasted this with what she described as an earlier, more ambitious scale of intent, recalling that “the original intent was to own a million bitcoin.” Wood now sees a plausible shift toward the U.S. Treasury becoming an active buyer in the open market, a move she argues would mark a profound inflection point.

This shift is significant, Wood suggested, because institutional participation in Bitcoin remains “just beginning.” A decisive purchase program by the United States would serve as a powerful validation signal, potentially unlocking a new wave of institutional capital. Furthermore, with nearly 20 million of Bitcoin’s 21 million supply cap already mined, Wood believes such a move would forcefully reassert the asset’s scarcity value at a pivotal moment in its monetary history.

Wood directly linked the likelihood of this policy shift to the political landscape, specifically the run-up to the 2026 U.S. midterm elections. She described President Trump as highly motivated to maintain momentum and avoid being perceived as a lame duck. “President Trump does not want to be a lame duck,” Wood stated, suggesting this dynamic will drive action.

She argued the President has “all kinds of reasons” to lean into cryptocurrency, pointing to aligned, pro-crypto constituencies. This political calculus, set against the midterm timeline, makes proactive policy moves more probable. Wood expressed a clear expectation: “So I actually think they will start buying.” She indicated this would likely be coordinated through the administration’s newly appointed crypto and AI czar, turning rhetorical support into tangible treasury strategy.

The ramifications of U.S. action, according to Wood, would extend far beyond domestic markets. She argued that if the U.S. openly declares, “Okay, now we’re going to buy,” it would spur a global reassessment of reserve policies. Other nations, particularly those wary of dollar dependency, would feel compelled to consider adding Bitcoin to their own reserves. “Do they want to be hostage to the dollar…? And you know, no, they don’t. So put some bitcoin in your reserves,” Wood summarized.

This accelerated diversification, however, carries risks. Wood warned that a rush by governments to allocate reserves to Bitcoin could increase volatility for weaker fiat currencies, especially in emerging markets, as capital seeks a new, non-sovereign store of value. For any U.S. strategy to be feasible, Wood emphasized a key constraint: it would need to be budget-neutral. While she did not outline a specific funding mechanism, treating this fiscal requirement as the primary gating factor underscores the practical challenges of executing such a reserve policy at the federal level.