Fidelity Digital Assets analyst Matt Hogan has emphasized the growing risks for nations that avoid Bitcoin (BTC) allocations. According to Hogan, governments that dismiss the potential of Bitcoin are inadvertently exposing themselves to greater financial uncertainty than those that embrace it.
Hogan’s report, released on Tuesday, draws attention to the fact that many countries have already acquired Bitcoin indirectly. These assets, often seized during government crackdowns on illegal activities, have not been part of intentional, long-term investment strategies. Nations like the United States have been constrained by regulatory restrictions that require them to auction off any seized Bitcoin, rather than incorporating it into their national reserves.
📢 Is it “too late” to enter the digital assets market? Our 2025 Look Ahead shares our team’s answer and highlights potential opportunities emerging from the approval of spot digital asset ETPs and a post-election surge.
— Fidelity Digital Assets (@DigitalAssets) January 7, 2025
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However, Hogan predicts that 2025 will mark a pivotal moment for Bitcoin’s acceptance. He foresees that an increasing number of nation-states, central banks, and sovereign wealth funds will look to Bitcoin as a strategic asset. “We anticipate more nation-states, central banks, sovereign wealth funds, and government treasuries will look to establish strategic positions in Bitcoin,” Hogan said, reflecting the growing recognition of Bitcoin’s potential as a store of value.
Nations such as Bhutan and El Salvador have already adopted Bitcoin into their financial strategies, yielding significant returns. El Salvador, for example, made history by becoming the first country to make Bitcoin legal tender, while Bhutan’s central bank has integrated Bitcoin into its reserves. These success stories are drawing attention to the potential advantages of early Bitcoin adoption.
The U.S. government holds approximately 198,109 BTC, valued at around $20 billion, primarily acquired through criminal seizures like the Silk Road case. With calls for a strategic Bitcoin reserve in the U.S., spearheaded by figures like President-elect Donald Trump and Senator Cynthia Lummis, Fidelity warns that nations may begin stockpiling Bitcoin in secrecy to avoid driving up demand and prices.
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Fidelity’s analysis suggests that if the U.S. enacts the Bitcoin Act of 2024, mandating the purchase of up to 1 million BTC over five years, other countries may feel pressured to follow suit—though most will likely do so quietly to retain a strategic edge.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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