President Trump’s announcement on Sunday that he is planning to establish a federal cryptocurrency reserve, sent digital asset markets soaring. However, it also reinstated concern about potential conflicts of interest, this time David Sacks involved the venture capitalist, who serves as Trump’s crypto and artificial intelligence Czar.
The president said on Sunday that a future American cryptor reserve will hold tokens including XRP, Sun, ADA, ETH and BTC. Ada rose by 60% within minutes of the message, and all the other listed tokens experienced double -digit award.
The market response immediately drawn attention to the selection of ways in which Trump and his inner circle could take advantage of his cryptopolitics.
Among the most obvious potential recipients were sacks whose venture company, Craft Ventures, is Invested in Bitvis—A Crypto Index Fund Manager with possessions in all the digital tokens named in Trump’s statement – and other crypto -startups. Previously, Sacks also revealed personal investments in some of the tokens listed by the president.
After Sunday’s announcement, Sacks said at X, “I sold all my cryptocurrency (including BTC, ETH and SOL) before the start of the administration.” In response to a community note on X on craftsmanship ‘investment in Bitvis, Sacks added, “I had a $ 74K position in the Bitvise ETF that I sold on January 22. I don’t have“ big indirect team. “” “”
It is unclear whether SACKS retains a direct proportion in bites through craftsmanship where he remains a partner. Sacks led Craft Ventures’ seed investment in 2017 to Bitwise, and the venture company is still showing bitwise in its portfolio.
A representative of Craft Ventures refused to share something beyond Sacks’ X -Positions. The company told the Financial Times on Sunday that it still has efforts in some cryptocurrency companies.
Bitwise operates a series of exchange -dealing funds (ETFs), including a “10 Crypto Index Fund” that contains all the tokens intended for Trump’s reserve. The company has also submitted applications for serving ETFs to XRP and SOL, including tokens. If these applications are approved, Bitwise would benefit from increased interest in the assets if included in an American crypto reserve.
Bitvis did not respond to a request for comment.
Sacks are hosting a first-in-the-in-stroke cryptocurrency summit at the White House on Friday, where more details about the administration’s plans for the industry are expected to emerge.
Trump has worked hard in the past year for the court’s supporters in the Cryptocurrency industry-one of the largest business donor groups for the 2024 election. While the president’s anti-regulating attitude has been welcomed by some in the industry, even some of his pro-crrypto-supporters have begun to fear that highly highlighting XRP (XRP) risks delegitimization of the sector.
The president’s own cryptocurrency companies have added concerns about potential conflicts of interest.
In January, Trump launched a meme -coin, Trump, on the Solana Blockchain -the network behind the sun -token. Meanwhile, World Liberty Financial (WLFI) – a decentralized financing initiative supported by the president and his sons – has built his own treasury with crypto assets. The treasury includes some of the same symbols listed for admission to the federal cryptor reserve, which means that any price provision could apparently benefit Trump directly.
