In a post on Truth Social, Trump said his January executive order on digital assets would establish a stockpile of currencies, including Bitcoin, Ether, XRP, Solana, and Cardano. The specific names had not been previously disclosed.
More than an hour later, Trump added: “And, obviously, BTC and ETH, as other valuable Cryptocurrencies, will be at the heart of the Reserve.”
Bitcoin, the world’s largest cryptocurrency by market capitalization, rose more than 11% to $94,164 on Sunday afternoon. Ether, the second-largest, gained about 13% to reach $2,516.
The broader cryptocurrency market surged approximately 10%, adding over $300 billion in value following Trump’s announcement, according to cryptocurrency data provider CoinGecko.
XRP is the token of Ripple Labs, a cryptocurrency company that has supported a super PAC aimed at influencing November’s congressional elections in favor of the crypto industry, Reuters previously reported.
“This move signals a shift toward active participation in the crypto economy by the US government,” said Federico Brokate, head of US business at 21Shares, a digital assets investment management firm. “It has the potential to accelerate institutional adoption, provide greater regulatory clarity, and strengthen the US’s leadership in digital asset innovation.”
James Butterfill, head of research at asset manager CoinShares, expressed surprise that assets beyond Bitcoin were included in the reserve.
“Unlike Bitcoin…these assets are more akin to tech investments,” Butterfill said. “The announcement suggests a more patriotic stance toward the broader crypto technology space, with little regard for the fundamental qualities of these assets.”
Trump has gained backing from the crypto industry in his 2024 election campaign and has swiftly moved to support its policy objectives. He is set to host the first White House Crypto Summit on Friday, while his family has also launched its own digital tokens.
Under his Democratic predecessor, Joe Biden, regulators imposed stricter oversight on the cryptocurrency sector, aiming to curb fraud and money laundering.
Since Trump took office, the Securities and Exchange Commission has withdrawn investigations into multiple crypto firms and dismissed a lawsuit against Coinbase (COIN.O), the largest US crypto exchange.
Despite the recent policy shifts, cryptocurrency prices have declined sharply in recent weeks, with several major digital currencies erasing nearly all the gains made after Trump’s election victory sparked a surge of optimism in the industry.
Analysts suggest the market requires a catalyst to move higher, such as indications that the US Federal Reserve will cut interest rates or the introduction of a clear pro-crypto regulatory framework by the Trump administration.
Reuters has reported that Geoff Kendrick, an analyst at Standard Chartered, has projected Bitcoin could reach $500,000 before Trump leaves office, up from its record high of $109,071.
Regulatory filings in the US indicate that while hedge funds remain the dominant crypto buyers, banks and sovereign wealth funds have also been increasing their holdings.
Quarterly filings showed that asset managers raised allocations to US exchange-traded funds (ETFs) linked to the spot price of Bitcoin in the fourth quarter of 2024.
Legal experts and analysts remain divided on whether the creation of the reserve would require congressional approval. Some argue it could be established through the US Treasury’s Exchange Stabilization Fund, which has authority to buy and sell foreign currencies.
Trump’s crypto policy team had previously considered using cryptocurrencies seized in law enforcement actions to fund the reserve.
