The announcement of US President Trump last weekend on the training of a strategic cryptography reserve in the United States is optimistic despite the subsequent market reaction, the asset manager in a research report said on Tuesday.
Cryptographic markets skyrocketed after the news, but on Monday had made all these earnings.
Bitwise noted that investors have become unhappy with the announcement because the planned reserve will contain tokens other than simple Bitcoin (BTC).
The president announced that XRP, Solana (Sol) and Cardano (ADA) would be included in a strategic reserve, and would later add Bitcoin and Ether (ETH) to the list of assets.
“The inclusion of speculative assets like Cardano seems more calculating this strategy,” wrote Matt Hougan, director of investments in Bitwise, adding that despite the “erroneous deployment”, the market was mistaken.
“Trump’s initial proposal is rarely its final,” noted the report, and the final reserve will probably be made up of Bitcoin almost entirely. It will also be larger than the market is expecting.
If the United States has established a strategic cryptography reserve, other nation states will probably follow, said Bitwise, and the digital assets acquired will probably be held for a lot of time.
“The American government declaring that the” strategy “of cryptographic assets is optimistic”, and the market will eventually come to this way of thinking, added the report.
Read more: Us Crypto Strategic Reserve more probably, more necessary details: Citi
