Sacks stated that he liquidated his Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) holdings before Donald Trump took office. Despite this, his investment firm, Craft Ventures, still has stakes in select crypto startups. Although Sacks got rid of his crypto holdings, Metaplanet continued its aggressive Bitcoin acquisition strategy by purchasing 156 BTC for $13.4 million and expanding its corporate Bitcoin holdings. The firm is also exploring international expansion and a potential US listing. Additionally, BlackRock added its Bitcoin ETF to its $150 billion model portfolio, allowing portfolios with alternative assets to allocate between 1% and 2% to the iShares Bitcoin ETF Trust (IBIT). Despite the large recent outflows from Bitcoin ETFs, BlackRock is still bullish on Bitcoin’s long-term potential due to its diversification benefits.

David Sacks Confirms He No Longer Holds Any Crypto

David Sacks, the White House AI and crypto czar, confirmed that he no longer holds any cryptocurrency assets. He stated that he sold everything before Donald Trump took office as President of the United States. In a post on X on March 2, Sacks clarified that he liquidated his holdings, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), before the beginning of the administration.

Sacks’ comments were made in response to a Financial Times article, which reported that his investment firm, Craft Ventures, still has stakes in a small number of crypto startups. According to the publication, both Sacks and the firm divested their direct crypto holdings shortly after Trump’s inauguration. 

Craft Ventures has launched four investment funds, with its most recent fund closing in November after raising $712 million. The firm also backed several crypto-related companies, including Bitwise Asset Management and BitGo, and also holds investments in major social media platforms like Meta, Reddit, and X. Sacks also made a personal investment in the Solana-focused venture firm Multicoin Capital in 2018.

Sacks has been very vocal about his support for Trump’s crypto policies and recently praised the administration for its efforts to make the United States a leader in the digital asset sector. On March 2, he posted that Trump was fulfilling his promise to turn the country into the “crypto capital of the world,” after the President’s announcement of a strategic crypto reserve. The announcement led to a surge in the crypto market, with prices jumping 12% as retail investors reacted to the news.

Trump is set to host the first-ever White House Crypto Summit on March 7, which will bring together industry executives and policymakers to discuss regulatory frameworks, stablecoins, and the proposed crypto reserve. Trump’s son, Eric Trump, praised the decision to reveal the initiative on a Sunday when traditional financial markets were closed. He described it as a moment where “retail investors win” while also warning that traditional finance will need to adapt or risk becoming obsolete. 

The sentiment was shared  by Anthony Pompliano, the CEO of Professional Capital Management. He found it amusing that Wall Street was unable to react immediately to the news due to its limited trading hours.

While Davis Sacks rid himself of his crypto holdings, others are making it a priority to stock up. Metaplanet, a Bitcoin-focused investment firm, recently expanded its holdings with the purchase of an additional 156 Bitcoin on March 3.

The company bought the assets for approximately $13.4 million at an average price of $85,890 per Bitcoin, bringing its total Bitcoin reserves to 2,391 BTC. Since adopting its Bitcoin investment strategy in April of last year, the firm accumulated $196.3 million worth of Bitcoin at an average purchase price of $82,100 per coin, yielding a 13% increase in value.

The firm is led by CEO Simon Gerovich, and is also exploring opportunities to expand beyond Japan and is considering a potential listing outside the country. Over the past week, Gerovich met with officials from the New York Stock Exchange and Nasdaq to introduce Metaplanet’s platforms and functions. He stated that the company is assessing the best way to make its shares more accessible to global investors. While Metaplanet has not confirmed whether it will proceed with a US listing, its shares have been trading on OTC Markets since November.

(Source: X)

OTC Markets is a US-based financial platform, and it provides pricing and liquidity information for more than 12,000 over-the-counter securities, including many international firms. Since launching on OTC Markets on Nov. 22, Metaplanet’s shares surged by 530% from $3 to $18.9. The company has also been one of the best-performing stocks on the Tokyo Stock Exchange over the past year, recording an 1,800% increase in value, according to Google Finance data.

Metaplanted share price over the past 12 months (Source: Google Finance)

Metaplanet currently ranks as the 14th largest corporate Bitcoin holder globally, according to data from BitBo’s BitcoinTreasuries.NET. To support its Bitcoin acquisition strategy, the firm has leveraged various financial instruments since April and has set an ambitious target to accumulate 21,000 BTC by 2026. 

BlackRock Adds Bitcoin ETF to Model Portfolios

Meanwhile, BlackRock added its Bitcoin exchange-traded fund (ETF) to its model portfolio product, allowing portfolios with alternative assets to allocate between 1% and 2% to the iShares Bitcoin ETF Trust (IBIT). The firm considers this range reasonable because of Bitcoin’s volatility, as larger allocations could greatly impact portfolio risk. BlackRock’s $150-billion model portfolio product is used by financial advisers, and includes various investment strategies that are specifically aimed at growth, income generation, and capital preservation.

The firm expects the model portfolio sector to expand to $10 trillion over the next five years, up from $4.2 trillion in 2023. Other major financial firms also commented on Bitcoin’s role in traditional portfolios. Fidelity said that small allocations could enhance returns but introduce exponential risk, while JPMorgan emphasized Bitcoin’s impressive returns but extreme volatility.

(Source: Fidelity)

Bitcoin’s volatility became very evident on Feb. 28, with prices ranging from $78,215 to $85,122. The uncertainty in global markets, including the threat of a trade war and US economic instability, also contributed to recent market fluctuations. Additionally, BlackRock’s Bitcoin ETF experienced turbulence as well after seeing its largest outflow to date on Feb. 26, with $420 million withdrawn. Other Bitcoin ETFs saw similar trends, with CoinGlass reporting total outflows of $756 million.

Despite these outflows, BlackRock is still very optimistic about Bitcoin’s long-term potential. Michael Gates, the lead portfolio manager for the firm’s Target Allocation ETF model suite, believes Bitcoin offers unique diversification benefits. Meanwhile, the Crypto Fear & Greed Index signaled “extreme fear” on Feb. 26, and dropped to a score of 10. This level was last seen in June of 2022, during the collapse of Three Arrows Capital.