Bitwise CIO Matt Hougan on Wednesday that despite a bumpy rollout, President Donald Trump's strategic crypto reserve announcement remains bullish for the market

Unveiled on Sunday, the reserve—set to include Bitcoin BTC/USD, Ethereum ETH/USD, Solana SOL/USD, Ripple XRP/USD, and Cardano ADA/USD

Despite a bumpy rollout and critiques from industry figures over its scope, President Donald Trump’s strategic crypto reserve announcement remains bullish for the market, Bitwise Chief Investment Officer Matt Hougan argued on Wednesday.

What Happened: Unveiled on Sunday, the reserve—set to include Bitcoin BTC/USD, Ethereum ETH/USD, Solana SOL/USD, Ripple XRP/USD, and Cardano ADA/USD triggered a swift market reaction, with Bitcoin climbing from $85,000 to $95,000 before relinquishing all gains by Monday.

However, while the diverse asset mix drew criticism from crypto luminaries and sparked initial skepticism, Hougan maintains that the policy holds long-term potential, which the market will eventually factor in.

In a Tuesday blog post, Hougan addressed the backlash, which included Bitwise CEO Hunter Horsley's tweet on Sunday: "I imagined a Strategic Reserve would be just Bitcoin. That makes the most sense to me... Bitcoin is the undisputed store of value for the digital age."

Horsley's sentiment was shared by Coinbase COIN CEO Brian Armstrong and Castle Island's Nic Carter, who questioned the inclusion of non-Bitcoin assets.

But Hougan sees the flaws in the announcement as minor compared to its overall bullish implications for Bitcoin and the crypto market.

"For all of the flaws in the rollout, the reserve news is bullish," wrote Hougan, adding that the market will factor in the policy's significance.

Indeed, Bitwise data from CoinGecko tracking crypto assets between February 27 and March 3 shows the initial jolt of the announcement and Bitcoin’s subsequent retreat.

Hougan attributes the retreat to skepticism over speculative assets like Cardano but predicts a refined outcome.

"This week's announcement—as imperfect as it is—marks the first time the U.S. has ever said that bitcoin is a strategic asset," he noted.

Also Read: White House Crypto Summit To Feature Roundtable With Industry Leaders Including Michael Saylor

What's Next: He expects Friday's White House Crypto Summit, hosted by crypto czar David Sacks, to sharpen the proposal—likely toward a Bitcoin-centric reserve—broadening the policy's global impact.

"We will have to wait until Friday to hear the administration's final thoughts on the reserve and what, if any, role the White House sees for crypto in the new Bretton Woods that is being forged in the wake of the war in Ukraine," said Hougan.

"My guess is that the administration will pivot to a more streamlined program focused on Bitcoin, and that the officials will highlight the need for U.S. leadership in the fast-approaching global crypto age."

While supportive of the administration's crypto-friendly stance, Horsley expressed a narrower vision in his tweet: "Of course, I'm grateful the new administration is so constructive on the space. Look forward to learning more about the thinking here."

However, Hougan builds on this, arguing that international competition—evident in El Salvador, Bhutan, and Abu Dhabi's Bitcoin acquisitions—could accelerate if the U.S. commits.

He also sees political inertia favoring retention over liquidation, stating, "There is asymmetric passion for crypto in this country: There are a significant number of people who love crypto and a relatively small number who hate it."

Despite the rocky start, Hougan believes the reserve's bullish core will prevail over the cosmetic flaws.