There’s a rumor that the candidate chosen by Donald Trump to function Secretary of the Treasury in his administration, Scott Bessent, intends to get rid of Bitcoin ETFs to keep away from potential conflicts of curiosity along with his new function.
Scott Bessent: the Treasury Secretary chosen by Trump will promote ETFs on Bitcoin
Scott Bessent is a billionaire hedge fund supervisor, and in his portfolio, there are numerous property, together with ETFs on Bitcoin.
He was a associate at Soros Fund Administration, the place he turned the pinnacle of the London workplace, and he’s the founding father of Key Sq. Group.
Key Sq. Group was created in 2015 along with Michael Germino. It’s an funding firm that makes use of geopolitics and economics to make macro investments.
The corporate has an AUM exceeding 5 billion {dollars} and has recorded important positive factors from 2021 to 2023.
Observe that Bessent was additionally a professor of financial historical past at Yale, from 2006 to 2011.
On the finish of November 2024, Donald Trump introduced his intention to appoint him as the subsequent Secretary of the Treasury of the US in his new administration that can take workplace on January 20.
Bessent and Bitcoin
Scott Bessent additionally occurs to be an fanatic of the crypto markets.
It ought to subsequently not be stunning in any respect that in his portfolio he additionally has ETFs on Bitcoin.
Just a few months in the past, throughout an interview, he brazenly said that he’s enthusiastic about Trump’s crypto adoption.
In keeping with Bessent, cryptocurrencies are instantly associated to freedom, and they’re right here to remain.
Moreover, he believes that Bitcoin is among the most enjoyable issues, and that cryptocurrencies are vital for attracting younger folks to the monetary markets.
His help is subsequently nearly complete, despite the fact that within the function of Secretary of the Treasury he can even should cope with the quite a few scams which have plagued the crypto markets for years now.
The vital factor, nonetheless, is that he talked about Bitcoin as a separate factor, in comparison with the remainder of the cryptocurrencies, and in reality, his portfolio consists of ETFs on BTC.
The liquidation of Bitcoin ETFs within the Trump administration
The rumor concerning the liquidation of its Bitcoin ETFs was printed by the New York Instances.
The important thing level is the attainable battle of curiosity of the brand new Secretary of the Treasury concerning the property that he has in his portfolio.
Subsequently, in response to the NYT, he plans to liquidate a number of property liable to battle of curiosity, together with his shares in BTC ETFs.
In complete, Bessent holds investments price over 700 million {dollars}, of which solely a small half (between 250,000$ and 500,000$) in ETFs on Bitcoin.
The figures that it’ll subsequently liquidate are too small to have even a minimal affect on the markets, and given the motivation, they need to not even affect the sentiment.
The affect on the worth of Bitcoin
This information subsequently shouldn’t have any important affect on the worth of BTC.
A special dialogue, nonetheless, issues the insurance policies of Trump and Bessent, significantly concerning the greenback.
The identical Bessent has certainly said that the brand new Trump administration will in all probability search to maintain the US greenback robust.
It ought to be remembered that within the medium/long run, the development of Bitcoin’s worth tends to be inversely correlated to the greenback, and particularly to the Greenback Index.
Nonetheless, in lately the Greenback Index is at its highest lately, and there are a number of analysts who imagine that within the brief time period it might find yourself weakening a bit.
Moreover, there are additionally analysts who argue that Trump may truly discover a weak greenback extra handy at this stage, with a purpose to counterbalance the issues that will probably be precipitated to exports by the rise in tariffs. It shouldn’t be forgotten that if the USA will increase tariffs on imported merchandise, it is extremely probably that the exporting international locations affected by these tariffs will do the identical.
Nonetheless, there’s the chance that the greenback might weaken solely in the course of the first part of the Trump administration, and that as a substitute it might later provoke a brand new part by which the greenback might strengthen.