Cathie Wood has reignited debate around Bitcoin’s role in U.S. policy after suggesting that the federal government could soon begin actively purchasing BTC to build a national strategic reserve.
Speaking on the Bitcoin Brainstorm podcast, the ARK Invest founder argued that political incentives, market dynamics, and Washington’s growing engagement with digital assets could converge as early as 2026, potentially marking a turning point in sovereign Bitcoin adoption.
Wood’s remarks come at a time when crypto policy is no longer a fringe issue in U.S. politics. With digital assets now a visible voting issue and Bitcoin increasingly framed as a strategic commodity, her comments add weight to the idea that the U.S. government may move beyond simply holding seized coins and into the open market.
Key Takeaways
- Cathie Wood believes the U.S. government could begin actively buying Bitcoin in 2026 to build a national strategic reserve.
- Potential U.S. Bitcoin purchases would mark a shift from relying solely on seized assets to open-market accumulation.
- Political incentives ahead of the midterm elections may drive stronger federal support for crypto-related policies.
- Large-scale government buying could tighten Bitcoin’s supply and influence long-term price dynamics.
- Despite stablecoins reducing some use cases, ARK Invest maintains a long-term Bitcoin bull target of $1.2 million.
From Seized Assets to Strategic Accumulation
At present, the U.S. government’s Bitcoin holdings consist almost entirely of assets seized through criminal forfeitures. Estimates place those holdings at close to 200,000 BTC, making Washington one of the largest known holders of Bitcoin globally. However, no confirmed open-market purchases have taken place.
Wood believes that may change.
“It seems as though there has been reticence about actually buying Bitcoin for the strategic reserve,” she said. “So far, it’s confiscated. The original intent was to own a million bitcoins, so I actually think they will start buying.”
The figure she referenced—one million BTC—has circulated in policy discussions as a long-term aspiration for a U.S. Strategic Bitcoin Reserve. If realized, it would represent nearly 5% of Bitcoin’s fixed 21 million supply, a scale large enough to materially affect liquidity and price discovery.
Unlike private investors, a sovereign buyer would not be driven by short-term profit. That distinction alone, analysts argue, could reshape market psychology around Bitcoin’s scarcity and long-term value.
Political Timing and the Midterm Factor
Wood tied the likelihood of government purchases to political strategy, particularly as President Donald Trump approaches the midpoint of his second term. According to her, the administration has strong incentives to accelerate crypto-related initiatives ahead of the U.S. midterm elections.
“He doesn’t want to be a lame duck,” Wood said. “He wants to have another one or two productive years.”
She added that Trump is likely to work closely with his appointed crypto and AI advisors to push through both regulatory changes and asset-related decisions that appeal to pro-crypto voters.
Crypto-focused political action committees, industry executives, and retail investors played an increasingly visible role in recent election cycles. Wood argued that this support matters.
“Part of the reason he won the presidency, I think, was the crypto community,” she said.
She also pointed to the Trump family’s direct exposure to digital assets as another factor shaping policy direction.
“Another reason, of course, is his family is all in on Bitcoin and other crypto assets.”
Scrutiny Over Compliance With Existing Orders
While the idea of future Bitcoin purchases is gaining attention, questions remain over how faithfully the government is following existing directives related to its current holdings.
Earlier this year, President Trump signed an executive order instructing federal agencies to stop selling seized Bitcoin and instead preserve those assets for a national reserve.
Yet recent reports suggest that some Bitcoin linked to high-profile cases may have been liquidated despite that order.
U.S. Senator Cynthia Lummis of Wyoming publicly raised concerns after on-chain data appeared to show seized Bitcoin from the Samurai Wallet case being transferred to a Coinbase Prime account.
“Why is the U.S. government still liquidating Bitcoin when POTUS explicitly directed these assets be preserved for our Strategic Bitcoin Reserve?” Lummis wrote.
According to asset liquidation documents cited in reporting, more than 57 BTC—worth over $6 million at the time—were transferred to the U.S. Marshals Service before appearing on-chain at an exchange-linked address that later showed a zero balance. The episode has intensified calls for transparency around how federal agencies handle digital assets.
Wood’s Long-Term Bitcoin Conviction Remains Intact
Despite near-term uncertainty around policy execution, Wood has not wavered in her long-term Bitcoin outlook. ARK Invest continues to maintain a bull-case price target of $1.2 million per BTC, even after adjusting parts of its valuation model.
The adjustment came as stablecoins grew faster than ARK initially expected. Wood acknowledged that dollar-pegged tokens have absorbed some use cases previously assigned to Bitcoin, particularly in emerging markets.
“Stablecoins are taking on one of the roles we thought that Bitcoin would play,” she said, describing them as an “insurance policy” and a growing buyer of U.S. Treasury securities.
As a result, ARK reduced its assumptions around Bitcoin’s role as an emerging-market safe haven. Even so, Wood argued that Bitcoin’s position as “digital gold” has strengthened enough to offset that shift.
“Our bull price really hasn’t changed,” she said. “We’re still reiterating long-term bullishness here.”
She previously confirmed that ARK trimmed roughly $300,000 from its most optimistic forecast, settling on the $1.2 million figure.
What Government Buying Could Mean for Bitcoin’s Price
If the U.S. government were to begin buying Bitcoin on the open market, the implications could extend far beyond symbolism. Even modest, incremental purchases would introduce a large, price-insensitive buyer into a market defined by limited supply.
Such a move could also influence institutional behavior. Pension funds, sovereign wealth funds, and conservative asset managers often take cues from government policy. A U.S. commitment to Bitcoin accumulation could reduce perceived career risk for institutions considering exposure.
That said, short-term price action remains constrained. According to CCN analyst Victor Olanrewaju, Bitcoin has been trading within a defined range for months.
He noted that BTC has oscillated between roughly $85,600 and $93,700, with no clear directional bias.
A sustained break above key moving averages could open the path toward the $100,000–$103,000 zone. Conversely, a breakdown below range support could see prices revisit the low $80,000s.
A Shift in How States View Bitcoin
At the state level, momentum is also building. Florida, Texas, and several other states are exploring legislation tied to crypto reserves or digital asset frameworks. While these efforts are smaller in scale, they reflect a broader reassessment of Bitcoin as a strategic asset rather than a speculative one.
For Wood, that reassessment is overdue. She believes new, long-term market participants—both public and private—could help reduce extreme volatility over time, even as Bitcoin remains subject to cyclical drawdowns.
“If we can get through this cycle with a 30% drawdown instead of 50% or more,” she said during the podcast, “that would be a victory.”
Whether Washington ultimately becomes an active Bitcoin buyer remains uncertain. But Wood’s comments underscore a reality that would have seemed implausible just a few years ago: Bitcoin is now part of serious policy conversations at the highest levels of government.
