Matt Hougan, Chief Investment Officer at Bitwise, believes that establishing a national Bitcoin fund and digital asset reserves in the United States will have a positive impact on cryptocurrencies.

After President Donald Trump signed an executive order on March 6 to create government cryptocurrency reserves, many leading digital assets saw sharp declines. The price drop occurred because the president did not authorize the purchase of cryptocurrencies with public funds, as many in the crypto community had anticipated.

However, Hougan remains optimistic. He argues that Trump’s executive order is a bullish signal, since the establishment of an official Bitcoin reserve fund:

• Significantly reduces the likelihood of a Bitcoin ban in the U.S.;
• Greatly increases the probability that other countries will also set up strategic Bitcoin reserves;
• Accelerates the pace at which governments worldwide will consider launching Bitcoin funds;
• Makes it more difficult for Bitcoin to be classified as a risky asset unsuitable for wealth preservation.

Aside from the United States, national Bitcoin funds have been established in El Salvador and Bhutan. El Salvador invests in Bitcoin aiming for capital appreciation, and since initiating its investments in October 2021, the country has achieved an unrealized profit of approximately 90%. Bhutan, on the other hand, mines Bitcoin and uses the generated funds to support public programs, including free healthcare.

It remains unclear which other countries will follow the U.S. example. Coinbase (NASDAQ:COIN) CEO Brian Armstrong suggested potential candidates could come from the G20, which includes nations like Russia, the United Kingdom, and France.