Bitcoin ETF Approval to Boost US Govt’s $10B Crypto Holdings

• The US Government owns over 1% of the total BTC supply
• Bitcoin dominates its $10 billion crypto holdings. 
• The funds come from high-profile seizures.

The upcoming Bitcoin ETF approval will likely have an unexpected beneficiary – the US federal government, which has about a $10 billion stake in the case.  

Holding over 1% of the total Bitcoin supply, the United States Government (USG) is a major crypto whale. An ETF approval will boost its extensive portfolio, accumulated mainly through asset seizures. 

Unveiling the US Government’s Crypto Portfolio

The US federal government has quietly emerged as a formidable force in the cryptocurrency market, specifically in Bitcoin (BTC). 

As of early 2024, the USG’s holdings in Bitcoin alone are astounding, with over 213,468 BTC, translating to approximately $9.63 billion. This figure puts the USG as one of the largest single holders of Bitcoin, owning over 1% of the total supply. 

But Bitcoin isn’t the only digital asset in the USG’s portfolio. Ethereum (ETH), various stablecoins like USDC, AUSDC, and TUSD, and other altcoins such as CRV, LINK, and MATIC also form part of its crypto portfolio.

How the US Government Got $10 Billion in Bitcoin

The bulk of the USG’s Bitcoin holdings can be traced back to various legal seizures. High-profile cases involving James Zhong, Ross Ulbricht (creator of Silk Road), and the couple Ilya Lichtenstein and Heather Morgan have contributed significantly to the USG’s cryptocurrency reserves. These seizures often occur as part of criminal investigations, where digital assets are confiscated as illicit gains.

There’s growing speculation about how the USG might leverage these assets. With the upcoming decision on Bitcoin ETFs, the stakes are even higher. An approval will likely inflate the value of the USG’s holdings, making them even more valuable. 

On the Flipside

• Last year, the federal budget was $6.13 trillion, approximately $16.79 billion per day. This makes it unlikely that USG’s crypto holdings will make much difference for the country. 
• Notably, the US government is still holding on to its seized Bitcoin and did not attempt to auction it. 

Why This Matters

The USG’s potential sale or holding of its Bitcoin reserves post-ETF approval could significantly influence global crypto market trends. Such actions could lead to investor confidence and market dynamics shifts, affecting millions of crypto investors worldwide.

Read more about USG Bitcoin holdings:
Bitcoin Dump Incoming? U.S. Government Moves $1B of Seized BTC

Read more about the latest news on Bitcoin ETFs: 
BlackRock, Ark, Cut Bitcoin ETF Fees Ahead of Approval