Scott Bessent, a billionaire hedge fund manager, is preparing to sell some of his investments. President-elect Donald Trump has nominated him for the next Treasury Secretary. One of the key assets he plans to sell might be his stake in BlackRock’s Bitcoin ETF (IBIT).
Why Is Bessent Selling These Investments?
U.S. federal ethics guidelines requires nominees to divest certain holdings within 90 days of Senate confirmation to avoid conflicts of interest. Bessent’s decision to sell his assets, including his IBIT stake, is part of this process.
BlackRock’s Bitcoin ETF, known as IBIT, is one of the largest Bitcoin funds. It manages over $50 billion in assets. Bessent owns a stake in the ETF valued between $250,001 and $500,000.
Scott Bessent Bitcoin ETF Holdings. Source: US Office of Government EthicsHis investment in the Bitcoin ETF has made him a popular figure in the cryptocurrency community. Many see his support for Bitcoin as a positive sign for the industry.
Bessent’s financial portfolio is worth about $521 million. His investments include major stock market funds like SPDR S&P 500 Trust (SPY), Invesco QQQ Trust (QQQ), and Invesco S&P 500 Equal Weight ETF (RSP). He also owns stakes in gold and silver trusts, U.S. Treasury bills, and hedge funds. Bessent even disclosed owning a mansion in the Bahamas worth up to $25 million.
In addition to selling his assets, Bessent will resign from Key Square Group, the hedge fund he founded in 2015. This step is part of his commitment to follow ethics guidelines for public officials.
Will Bessent Really Sell His Bitcoin ETF?
There is some confusion about whether Bessent must sell his Bitcoin ETF stake. Mathew Sigel, a research head at VanEck, posted on X that it is unclear why Bessent would need to sell this particular investment. Sigel pointed out that other assets marked for divestment are listed clearly, but the Bitcoin ETF is not.
VanEck head is not sure whether Bessent has to sell his IBIT. Source: XWhy Is His Nomination Important?
Bessent is expected to bring a pro-cryptocurrency approach to the Treasury. In a past interview, he called cryptocurrency a tool for financial freedom. He also said the industry should not be punished for the actions of a few bad actors. This is contrary to the current Treasury Secretary Janet Yellen, who has been critical of Bitcoin. She once called it inefficient and asked for stricter crypto regulations.
Bessent’s confirmation hearing is scheduled for January 16, 2025. If confirmed, he will help shape Trump’s economic policies, which focus on tax cuts, reducing regulations, and promoting cryptocurrencies. Notably, many believe his confirmation is likely, with prediction markets giving him a 95% chance of success.
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