The Feds Stockpile ETF Bonds Including the MicroStrategy’s Share
The USA’s Federal Reserve System is being criticized a lot due to its monetary policy that will lead to the devaluation of the U.S. dollar, as experts claim. However, the use of this policy to buy the bonds of the exchange traded funds (ETFs) that include the bonds of MicroStrategy, the biggest cloud software service in the country, can actually benefit the cryptosphere.
The Feds buy the so-called junk bonds that are characterized as high-profit but with the same high risks. The share of MicroStrategy makes only 0.01% but still it’s a very important step of the Feds towards the future adoption of the Bitcoin ETFs.
The explanation is simple – the Feds help the company to increase their crypto holdings despite their mistrust with Bitcoins. Jerome Powell, the head of FRS, openly called Bitcoin a speculative asset. However, comparing the rapidly increasing amount of dollars with Bitcoins that are minted in a limited amount, even the Feds see Bitcoin as a better storage for money.