David Sacks, the newly appointed White House AI and Crypto Czar, has publicly denied claims of holding “large indirect holdings” in the Bitwise ETF on social media platform X (formerly known as Twitter).
The denial came in response to a community note which claimed that Sacks had significant indirect investments in the cryptocurrency-focused exchange-traded fund.
David Sacks claims he sold all his holdings
Sacks took X to address the claims directly, stating “This community note is a lie. I had a $74k position in the Bitwise ETF which I sold on January 22. I do not have “large indirect holdings.” he further said that he would provide a detailed update at the conclusion of the ongoing ethics review, indicating a commitment to transparency and accountability.
The controversy arose due to his significant influence on the Trump administration’s crypto policies. At the center of the controversy is Bitwise, a company offering various ETFs that track the performance of tokens like Bitcoin, Ethereum and others.
Indirect investment in Bitwise
While Sacks claims that he no longer holds direct investment in the Bitwise ETF, his venture capital firm, Craft Ventures is said to have stakes in crypto-related companies including Bitwise Asset Management. This indirect connection sparked the entire controversy about potential bias in his policy decisions.
Crypto Strategic Reserve and Crypto Summit
President Trump recently revealed plans for a “Crypto Strategic Reserve,” signaling a proactive approach towards integrating cryptocurrencies into the national financial strategy. The reserve is set to include Bitcoin, Ethereum, XRP, Solana and Cardano. The main aim of the administration right now is to establish U.S. as a global leader in the crypto space.
David Sacks is set to chair the inaugural White House Crypto Summit on March 7, where industry leaders will discuss regulatory framework and the proposed crypto reserves.
As the administration moves forward with its crypto agenda, the outcome of Sacks’ ethics review will be closely monitored by investors and industry overserves as well. This situation with David Sacks and the government’s cryptocurrency plans highlights the challenges of creating rules for cryptocurrencies while keeping the public’s trust.
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