Cathie Wood: Why Trump May Start Buying Bitcoin for the US

ARK Invest founder Cathie Wood is betting the next major catalyst for Bitcoin won't come from market dynamics but from political strategy in Washington D.C. She argues that President Donald Trump's political calculations could soon compel the U.S. government to begin actively purchasing Bitcoin for its national strategic reserve.

Wood believes cryptocurrency has become a key political issue for Trump, particularly with the 2026 midterm elections on the horizon. This dynamic, she suggests, makes it increasingly likely that the government will move beyond simply holding seized Bitcoin and become an active buyer on the open market.

The Political Calculus Behind Crypto

According to Wood, the crypto industry played a role in Trump's presidential victory. To maintain momentum and avoid becoming a "lame duck," she contends the president needs to keep this constituency engaged.

"He wants to have another one or two productive years, and I think he sees crypto as a path to the future," Wood stated on ARK's Bitcoin Brainstorm podcast.

This political incentive is the core of her thesis. Delivering tangible progress for the digital asset sector could be a strategic priority for an administration looking to solidify its power base ahead of the midterms.

Understanding the US Bitcoin Reserve

Early in Trump's second term, an executive order established a U.S. strategic Bitcoin reserve, a digital asset stockpile, and a new interagency working group led by Special Advisor for AI and Crypto, David Sacks.

However, the reserve has so far only been funded with Bitcoin seized through criminal forfeitures. While Trump has pledged not to sell these assets, the government has yet to purchase any Bitcoin outright.

"It seems as though there has been reticence about actually buying bitcoin for the strategic reserve," Wood noted. "So far, it's confiscated [bitcoin]."

She predicts this passive stance won't last, pointing to the administration's initial goals. "The original intent was to own one million bitcoins, so I actually think they will start buying."

Crypto's Rising Influence in Washington

The digital asset industry has significantly increased its political organization. In the last election cycle, industry-backed political action committees invested heavily in congressional races, and prominent executives, including Wood herself, publicly endorsed Trump.

The administration has reciprocated with clear signals of engagement. The White House has hosted crypto-focused events, and major firms like Coinbase, Tether, and Ripple have contributed to the construction of a new White House ballroom.

Laying the Policy Groundwork

The administration's actions extend beyond public gestures. Key policy moves include:

• Executive Orders: Establishing the Bitcoin reserve and crypto stockpile.

• Legislative Support: Backing initiatives like the GENIUS Act to create rules for stablecoins.

• Formal Recommendations: A July report from Sacks' working group proposed granting the Commodity Futures Trading Commission (CFTC) authority over spot markets for non-security digital assets.

The report also confirmed that the Treasury Department would manage the reserve. Crucially, it directed the Treasury and Commerce Departments to explore "budget-neutral" methods for acquiring more Bitcoin.

The "Scarcity Value" Trigger

Wood identifies the "budget-neutral" constraint as the primary hurdle but views it as solvable. A shift in U.S. policy from holding seized assets to active purchasing would represent a seismic event for the market, especially given Bitcoin's tightening supply. With nearly 20 million of the total 21 million BTC already mined, a new, large-scale buyer could have a dramatic impact.

"If we get the U.S. not just adding confiscated bitcoin to a strategic reserve but actually out there buying," Wood explained, "that would set off what we're all waiting for — the scarcity value to reassert itself."