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Key Takeaways
- Bitcoin briefly rose above $71,000 Monday morning.
- Former U.S. President Donald Trump announced that he would create a strategic bitcoin stockpile.
- Republican U.S. Senator Cynthia Lummis has announced a bill that would establish a bitcoin strategic reserve of roughly 5% of the total bitcoin supply.
- Twenty-eight Democrats signed a letter recommending that the party take a “forward-looking approach” to crypto.
- The Kamala Harris campaign has reportedly reached out to the crypto industry in an effort to reset relations.
- Spot ether ETFs ended their first week of trading with $341.8 million of net outflows.
Bitcoin (BTC) briefly topped $71,000 early Monday, riding high on the optimism from the Bitcoin 2024 conference in Nashville over the weekend, before reversing course and falling 2% to around $67,000 as of 2 p.m. ET.
Talk of Bitcoin Reserve Initially Props Up Price
Speaking at the Bitcoin 2024 conference, former U.S. President Donald Trump said if he comes back to the White House, his administration would not sell any bitcoin the U.S. government currently holds, or acquires in the future, in effect creating a “strategic national bitcoin stockpile.”
The U.S. government holds bitcoin and crypto assets that are often seized as a part of enforcement actions.
Additionally, Republican U.S. Senator Cynthia Lummis of Wyoming announced a bill that would go one step further and add to this strategic stockpile with purchases amounting to 5% of the total bitcoin supply over a set number of years.
Independent candidate for president Robert F. Kennedy Jr. also spoke at Bitcoin 2024, where he announced a plan similar to Lummis’. He said if elected, he would via executive orders have the more than 200,000 bitcoin held by the U.S. government transferred to the Treasury as a “strategic asset,” and direct the Treasury to purchase 550 bitcoins every day till the the reserve grows to 4 million bitcoins.
Trump also said that he would replace U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler. Gensler has been heavily criticized for the SEC’s enforcement actions against the crypto industry.
Crypto’s Increasing Influence in U.S. Elections
Crypto is becoming a hotter topic of conversation around the U.S. Presidential election.
Twenty-eight Democratic lawmakers and candidates sent a letter to the party’s national committee chair seeking a reversal of the party’s stance on bitcoin and crypto, Politico reported.
“From an electoral standpoint, crypto and blockchain technologies have an outsized impact in ensuring victories up and down the ballot,” the letter said.
Additionally, the Kamala Harris campaign has reached out to a variety of crypto companies in an effort to reset relations with the industry, according to the Financial Times. The Harris campaign had come under fire from the crypto community after declining an invitation to speak at the Bitcoin 2024 conference this past weekend like the other candidates.
Ether ETF Hype Fades Amid Outflows
Spot ether (ETH) exchange-traded funds (ETFs) ended their first week of trading with $341.8 million in net outflows, according to Farside Investors.
The Grayscale Ethereum Trust (ETHE) has seen just over $1.5 billion in outflows since going live last week, as holders of the preexisting fund switch to cheaper ETFs or simply sell their holdings. BlackRock’s iShares Ethereum Trust (ETHA) has been the winner of the spot ether ETF race so far, with $442 million of inflows.