Is the era of bonds and treasury bills over? Hunter Horsley's tweet suggests the country may adopt Bitcoin ETFs as reserves.

On January 16, Hunter Horsley, CEO of Bitwise Asset Management, revealed on Twitter that at least one national government has begun investigating the possibility of investing in Bitcoin (Bitcoin) Exchange-traded funds.

According to Horsley, the unnamed country is considering converting part of its foreign exchange reserves — traditionally held in foreign government bonds — into Bitcoin.

Typically, countries hold reserves in the form of stable assets such as US Treasury bonds, euros, or other highly liquid foreign bonds. Transferring even a small portion of those reserves to Bitcoin would represent a stark departure from traditional reserve management.

Although not specifically related to ETFs, El Salvador's move to adopt Bitcoin as legal tender in 2021 marked a landmark moment for cryptocurrency adoption at the sovereign level.

The latest development reflects recent comments from the Federal Reserve Chairman Jerome Powellwho described Bitcoin as more of a competitor to gold than a currency, highlighting the growing recognition of Bitcoin as a viable asset class.

This interest from world governments coincides with the first anniversary of the spot Bitcoin ETFs In the United States, these ETFs have seen significant growth since their approval by the US Securities and Exchange Commission on January 10, 2024.

According to the latest data from Quinglass As of January 16, the total assets under management of Bitcoin ETFs reached approximately $113.45 billion, reflecting the continued influx of investors. BlackRock's iShares Bitcoin Trust (IBIT) leads the market with $53.46 billion in assets under management, followed by Fidelity's Wise Origin Bitcoin Fund (FBTC) and Grayscale's Bitcoin Trust ETF (GBTC), each with more than $20 billion under management. .

The growing interest in Bitcoin ETFs also aligns with state-level legislative efforts to integrate Bitcoin into everyday financial systems. in OklahomaState Senator Dusty Devers recently introduced the “Bitcoin Freedom Act” (SB325), which would allow employees to receive salaries in Bitcoin and enable businesses to accept Bitcoin payments.

At the same time, the cryptocurrency market witnessed Significant growth Before Donald Trump's inauguration on January 20. Since Trump's re-election, the price of Bitcoin has risen from $69,000 to over $100,000, fueled by optimism surrounding his pro-business policies and the potential for regulatory easing under his administration.