Cathie Wood Predicts When Trump Might Start Acquiring Bitcoin for the US Reserve

Ark Invest CEO Cathie Wood has shared her thoughts on when former President Donald Trump could begin purchasing Bitcoin for the U.S. strategic reserve.

Key Takeaways

Cathie Wood anticipates that Trump may start buying Bitcoin for the U.S. reserve in 2026 due to the upcoming midterm elections.
Currently, the reserve contains only Bitcoin seized through enforcement, with no purchases yet due to budget-neutral restrictions.
Wood emphasizes the importance of regulatory clarity and the potential economic growth anticipated in 2026, which may further incentivize Bitcoin involvement.

Trump and Bitcoin

In a recent episode of Ark Invest’s Bitcoin Brainstorm, Cathie Wood discussed the potential for Donald Trump to buy Bitcoin for the U.S. reserve, especially in light of the impending 2026 midterm elections. She highlighted the need for clearer regulatory measures and an improvement in the current status of the reserve, which primarily consists of Bitcoin seized through enforcement actions.

When Will Trump Buy Bitcoin?

In the latest episode of Ark Invest's Bitcoin Brainstorm, Cathie Wood, alongside Bitcoin Park founder Rod Roudi and Ark Invest digital assets research director Lorenzo Valente, explored the future of Bitcoin purchases by the government. Roudi highlighted that 2025 could be a pivotal year for Bitcoin, prompting a discussion on expectations for 2026, in line with Ark Invest’s tradition of making annual predictions about the crypto market.

Wood predicted that the political landscape, specifically the midterm elections of 2026, will likely push Trump to take decisive action regarding cryptocurrencies. She believes that Trump aims to avoid a "lame duck" scenario later in his term and may want to achieve tangible results before the elections. This pressure could lead him to move beyond merely holding the seized Bitcoin and start making direct purchases.

Trump's Strategy and Political Considerations

Wood noted that Trump could collaborate with his appointed crypto and AI czar, David Sacks, to foster clearer regulations and promote greater crypto adoption. Historically, the reserve was designed to aim for a substantial amount of Bitcoin—up to one million BTC—but Wood pointed out that no real progress has been made in acquiring Bitcoin under the current budget-neutral restrictions.

Adding context, Wood referenced Senator Cynthia Lummis, who proposed the BITCOIN Act in March 2025. This legislation advocates for the U.S. government to buy and hold one million BTC as a possible solution to the national debt. However, as of now, the legislation remains stalled and lacks significant progress.

Wood believes that Trump has multiple compelling reasons to shift his approach regarding the Bitcoin reserve. The support he received from the crypto community significantly aided his presidential campaign and could again influence outcomes during the midterm elections. Additionally, she mentioned that Trump's family holds substantial investments in Bitcoin and other digital assets, fueling his interest in expanding the nation’s crypto involvement.

According to Wood, Trump's goal is to maintain productivity throughout his presidency, suggesting he views crypto as critical to the future economic and technological landscape of the country. Nonetheless, Valente cautioned that Trump's current executive order restricts Bitcoin purchases to budget-neutral alternatives.

Economic Growth Prospects for 2026

Wood also shared a second prediction for 2026, indicating expectations for stronger economic growth in the U.S. She attributes this potential growth to business-friendly policies, such as lower effective corporate taxes and incentives for accelerated depreciation. In her view, the U.S. currently boasts one of the lowest effective corporate tax rates among developed nations.

She explained that accelerated depreciation allows businesses to deduct the full cost of significant investments during their first operational year, which incentivizes construction of factories and Bitcoin mining sites within the U.S. Wood believes these incentives could stimulate economic activity and provide the government with greater financial flexibility. Furthermore, she suggested that the U.S. could gain Bitcoin exposure by investing in Strategic assets, which currently hold over 600,000 Bitcoin, potentially providing a more rapid approach to achieving the original reserve target.

Disclaimer: This content is purely informational and should not be seen as financial advice. The views mentioned in this article represent the author's personal opinions and do not reflect the views of The Crypto Basic. Readers are urged to conduct thorough research before making any investment choices. The Crypto Basic bears no responsibility for financial losses.