Cathie Wood: Trump May Buy Bitcoin For US Reserve Ahead Of Midterms

Cathie Wood, ARK Invest’s founder and CEO, has put forth a significant speculation regarding the future of the Trump administration's engagement with Bitcoin (BTC). Speaking on ARK’s “Bitcoin Brainstorm” podcast, Wood suggested that beyond merely holding confiscated Bitcoin, the administration might begin actively purchasing BTC to establish a US strategic reserve.

Wood frames this potential shift as a "catalytic signal" for both global markets and other governments, arguing it could be a critical inflection point given that institutional participation in Bitcoin is still "just beginning" and the asset's supply dynamics are becoming increasingly evident. She noted, "We have seen very little institutional buy-in, it is just beginning. And I think if we get the US, for example, not adding just confiscated bitcoin to a strategic reserve but, you know, out there buying... I have a feeling that would set off what we’re all waiting for, which is, you know, the scarcity value to reassert itself again now that we’re near 20 million bitcoin outstanding and we only have one more million to go.”

Midterms Could Drive US Bitcoin Reserve Buys

A key aspect of Wood's hypothesis ties this potential policy shift to political incentives, specifically the 2026 US midterm elections. She suggests that President Trump, motivated to maintain momentum and avoid political marginalization, might lean into crypto. Wood stated, "President Trump does not want to be a lame duck... So I have a feeling that he is going to work with his crypto and AI czar to do a few things… [and] it seems as though there’s been reticence about actually buying bitcoin for the strategic reserve. So far, so far it’s confiscated… So I actually think they will start buying.”

Furthermore, Wood highlighted the alignment of constituencies around the president, giving him "all kinds of reasons" to embrace crypto, with the political calculus of the midterm timeline being a significant factor. While not outlining specific execution mechanisms, she acknowledged the constraint of a budget-neutral reserve strategy as a critical gating factor for feasibility.

The implications of such a move, according to Wood, would extend far beyond domestic markets. She believes explicit US buying could compel other nations to re-evaluate their reserve policies. "Something that’s really important… we thought that countries would adopt it much earlier than they have. I think if the US actually says, ‘Okay, now we’re going to buy,’ that’s going to spur a lot of other governments to think this thing through. Do they want to be hostage to the dollar…? And you know, no, they don’t. So put some bitcoin in your reserves.”

Should this dynamic accelerate, Wood warned of renewed pressure on emerging-market currencies. She envisions a scenario where reserve diversification towards Bitcoin reshapes volatility across weaker fiat regimes, a direct consequence of Washington making an overt move from merely holding seized BTC to actively participating in the open market. At press time, BTC traded at $90,578.