President Donald Trump on Sunday unveiled plans to establish a U.S. “Crypto Strategic Reserve,” aiming to position the country as the global leader in digital assets. The reserve would include major cryptocurrencies such as Bitcoin BTC/USD, Ethereum ETH/USD, XRP, Solana, and Cardano. He reaffirmed his commitment to the initiative, describing Bitcoin and Ethereum as "the heart of the Reserve."

With BTC and ETH in the spotlight, investors are wondering: which ETF is better positioned to thrive in this new pro-crypto climate?

IBIT: A Strong Contender in the Bitcoin Race

The iShares Bitcoin Trust IBIT, has been a dominant force among spot Bitcoin ETFs, offering investors direct exposure to Bitcoin's price movements. The expense ratio carried by the ETF is 0.25%. With Trump's pro-Bitcoin stance, IBIT seems well-positioned to capitalize on BTC's price surge. If Bitcoin remains a key pillar of Trump's crypto strategy, IBIT stands to benefit the most.

Key Strengths of IBIT:

• Direct exposure to Bitcoin's price movements.

• Institutional support and rising trading volumes.

• Favorable sentiment from Trump's endorsement of BTC.

ETHA: Ethereum's Rising Star

The Ethereum ETF from Ark & 21Shares ETHA, offers exposure to Ethereum, the second-largest cryptocurrency by market cap. While Bitcoin has historically been the frontrunner, Ethereum's smart contract capabilities and use in DeFi and NFTs make it a compelling investment. The expense ratio is the same as IBIT. With Trump explicitly naming Ethereum as a core asset in the Crypto Strategic Reserve, ETHA is poised for a boost.

Key Strengths of ETHA:

• Exposure to Ethereum's smart contract ecosystem.

• Potential upside from Trump's pro-ETH stance.

• Growth in institutional adoption and staking rewards.

Which ETF Is More Resilient?

The answer depends on Trump's evolving stance and how markets react to broader crypto policies. If Bitcoin remains the primary focus, IBIT could maintain its edge as the go-to ETF for Bitcoin exposure. However, ETHA might surprise investors if Ethereum's network continues growing and institutional adoption picks up.

Renowned venture capitalist Chris Burniske advises investors to stay the course despite crypto market pullbacks, framing the recent downturn as a mid-bull market correction rather than a cycle top. Burniske suggests holding positions, avoiding frequent price checks, and adding to investments during fear-driven dips.

Arthur Hayes, co-founder of BitMEX, remains bullish on Bitcoin, predicting that its 2025 low won't fall below $70,000 and reaffirming his long-term $1 million price target. While acknowledging potential short-term dips, he sees Bitcoin as leading a broader bull cycle, fueled by economic factors like government debt financing and global liquidity issues.

Hayes argues that Bitcoin will recover first, even as traditional financial markets catch up. He warns that Bitcoin's current volatility signals an impending liquidity crisis, reinforcing its role as a leading indicator for global financial conditions.

On the other hand, Ethereum also holds a strong first-mover advantage in the smart contract space, and has become the industry standard for decentralized applications. This deep entrenchment makes it difficult for newer blockchains to overtake Ethereum, even if they introduce technically superior solutions.

Ultimately, both IBIT and ETHA stand to benefit from Trump's push to make crypto a national priority. While IBIT might experience more immediate gains, ETHA could see stronger long-term resilience as Ethereum's use cases expand.

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