Bitcoin (BTC) ETFs Rise in Premarket Despite Powell Dismissing Strategic Bitcoin Reserve Idea

As per Benzinga Pro on Thursday, the Bitwise Bitcoin ETF BITB saw a rise of 1.08%, ARK 21Shares Bitcoin ETF ARKB increased by 1.41%, Grayscale Bitcoin

Bitcoin ETFs saw a rise in premarket on Thursday, as Federal Reserve Chair Jerome Powell stated that the central bank is not permitted to accumulate Bitcoin (CRYPTO: BTC).

What Happened: Bitwise Bitcoin ETF (NYSE:BITB) was up 1.08%, ARK 21Shares Bitcoin ETF (NYSE:ARKB) gained 1.41%, Grayscale Bitcoin Trust (NASDAQ:GBTC) rose 1.32%, Fidelity Wise Origin Bitcoin Fund (NYSE:FBTC) was up 1.04%, and iShares Bitcoin Trust ETF (NYSE:IBIT) gained 1.26%.

Powell, speaking after the Fed’s latest policy meeting, emphasized that the central bank is not legally permitted to own Bitcoin. He noted that any legal considerations about Bitcoin stockpiling would fall under Congress’s jurisdiction.

His comments came amid discussions about a potential U.S. Strategic Bitcoin Reserve proposed by President-elect Donald Trump.

See Also: Crypto Analyst: Shiba Inu Price Set For Massive Surge, Could Go Up Sixfold

Despite the Fed’s position, Bitcoin's value has been on the rise, as optimism over Trump’s pro-crypto policies drove the apex crypto higher on Thursday. However, Powell’s statements did affect Bitcoin’s rally, which had been bolstered by expectations of a more lenient government stance.

Bitcoin was trading at $102,085 after dipping below $100,000 on Wednesday, as reported by Benzinga Pro.

Republican Sen. Cynthia Lummis (R-Wyo.) has introduced legislation for a Bitcoin reserve, but such a plan would need congressional approval and might face opposition from the Fed, as highlighted by Barclays analysts.

Backdrop: The backdrop to Powell’s comments includes a recent market upheaval following his hawkish outlook on interest rates.

As reported, the U.S. stock market faced a significant selloff after Powell’s remarks, which CNBC's Jim Cramer described as causing "incredible panic" in the markets.

This reaction was triggered by Powell’s announcement of a 25-basis-point rate cut to 4.25%-4.5%, alongside signaling only two potential rate cuts in 2025, fewer than the four projected in September.

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