Trump's New Strategy to Secure Crypto Reserve Involves Bitcoin (BTC), Ether (ETH), XRP, and Solana's SOL

U.S. President Donald Trump is seemingly employing the same strategy in securing the promised strategic crypto reserve comprising bitcoin (BTC) and probably ether (ETH).

U.S. President Donald Trump’s Sunday post on Truth Social, where he expressed his expectation for payments-focused XRP, Solana's SOL, and Cardano's ADA tokens to be included in the strategic digital assets reserve with bitcoin (BTC) and ether (ETH) at the core, drew an exuberant initial response.

The post had the total crypto market cap rise by 11% or $300 billion to $3.09 trillion. However, the rally ran out of steam Monday as market participants began criticizing Trump for being misinformed or ignorant for backing the inclusion of XRP and ADA.

As expected, the initial excitement paved the way for the realization that Trump still needs to secure Congressional approval, and the plans to invest in altcoins contradict D.O.G.E's efforts to cut costs and bring down debt.

"Big problem here is optics. When you include altcoins whose use case is too nascent to be deemed 'nationally strategic,' you risk the assumption of inside dealing even if it were patently false. This is politically negative, even among a subset of crypto enthusiasts," Jeff Park, head of alpha strategies at Bitwise Investment Management, said on X, formerly known as Twitter.

"Trump is about to understand in crypto land what bitcoin—and only bitcoin—represents," Park added.

However, per some observers, the mention of altcoins appears to serve as a form of extreme demand, intended to overwhelm the opposition (Congress) and create leverage in discussions about the strategic crypto reserve.

"The announcement is probably just Trump's usual negotiation tactic. I.e. Calling for a Strategic Reserve with XRP, SOL and ADA, so he can get one for BTC (and maybe ETH)," Ilan Solot, senior global market strategist at Marex Solutions, said in a client note titled "Curb Your Enthusiasm."

Solot added that the U.S. would retain the apprehended digital asset stockpile, but the probability of the government buying fresh BTC is less than 50%. Meanwhile, the odds of ETH purchases are small but real while those for altcoins are miniscule.

Critiquers argue against XRP and ADA by pointing out that these cryptocurrencies lack the real-world presence and the established utility of Ethereum and Solana, which actively support financial activities through stablecoins.

Additionally, the CME has not yet announced plans to list XRP and ADA futures, which is probably why many are against the addition of these coins to the national reserve. Note that before approving the spot bitcoin and ether ETFs, the SEC had approved ETFs investing in the CME-listed BTC and ETH futures, trusting the exchange's monitoring system to take care of the price manipulation concerns.

Jason Atkins, chief commercial officer at crypto-making firm Auros, said that market reactions to Trump announcements unfold in three phases, with the first characterized by rumors, the second by a hyperbolic announcement and the final one by tough negotiations.

"The second phase is triggered by an official announcement from Trump or his team, which tends to mirror the speculative nature of the first. His negotiation style –characterized by hyperbole, outsized promises, and demands beyond what is immediately feasible – often results in an initial surge in sentiment. We saw this overnight, as the market reacted positively, largely due to the relief following the risk reduction in phase one. However, caution is warranted," Atkins said in a late Monday email to CoinDesk.

Atkins added that the possibility of another leverage washout remains high as investors reassess the reality of bureaucracy, negotiations, and the uncertainty surrounding the actual flow of funds.

"Given that Congressional approval remains a hurdle and the timing of real fund movements is uncertain, traders and investors will need to assess whether this is a structural shift or just another cycle of speculation-driven volatility," Atkins noted.