🥶 21Shares Strategy Chief: Optimism for U.S. Crypto Strategic Reserves May Cool

Eliézer Ndinga, the Strategy Chief at 21Shares, believes that the recent rise in the cryptocurrency market, particularly altcoins, is mainly driven by discussions around the establishment of a "Crypto Strategic Reserve" in the U.S. However, this optimism may be overly aggressive, and he expects the market to cool down after receiving more timelines and details. He further analyzes:

1. Establishing a strategic reserve requires congressional approval; unlike the government merely hoarding seized assets, its framework needs clear planning:
1-1. Asset allocation and distribution (which cryptocurrencies and in what proportions)
1-2. Holding period (short-term or long-term)
1-3. Holding scale (e.g., holding 1% of Bitcoin’s total supply)
1-4. Market stabilization measures (to prevent large fluctuations or market manipulation)
1-5. Asset custody methods (potentially entrusted to institutions like Coinbase, Anchorage, BNY Mellon, etc.)

2. This process may take longer than the market expects; Trump may be using social media to pressure Congress by publicly stating conditions to drive negotiations. However, considering the obstacles and revisions in the legislative process, the final implementation of the plan may be delayed, leading to a cooling of the current market optimism.