Treasury Pick Holds Up to $500K in Blackrock Bitcoin ETF, Vows to Divest Over Conflicts

CN
7 hours ago

Scott Bessent, President-elect Donald Trump’s nominee for Treasury secretary, has disclosed a personal investment of between $250,001 and $500,000 in Blackrock’s bitcoin exchange-traded fund (ETF), the Ishares Bitcoin Trust (IBIT). The disclosure, released by the U.S. Office of Government Ethics as part of Bessent’s confirmation process, revealed the cryptocurrency-focused ETF as part of his substantial portfolio, which is valued at a minimum of $521 million.

If confirmed, Bessent has committed to divesting assets that could pose potential conflicts of interest, including the bitcoin ETF and other holdings tied to his hedge fund, Key Square Group.

Blackrock’s bitcoin ETF, a product that reflects the growing integration of cryptocurrencies into traditional investment portfolios, is one of several high-profile holdings in Bessent’s financial disclosures. Other assets include U.S. Treasury bills, Invesco funds, and currency-related investments. Bessent’s hedge fund, which has managed significant macroeconomic positions, is slated to wind down operations by the end of March.

The divestiture process is part of federal requirements that mandate nominees for high-ranking positions to avoid any potential financial conflicts of interest. Some of Bessent’s investments, however, will take longer to divest due to withdrawal restrictions, with certain holdings not fully liquidated until September.

As Treasury secretary, Bessent would oversee significant areas of economic policy, including cryptocurrency regulation and monetary policy. His portfolio also includes non-financial assets such as real estate in the Bahamas valued at over $5 million and a collection of art and antiques worth at least $1 million. Federal rules provide that nominees may reinvest proceeds from divested assets into approved instruments, such as Treasury bills or mutual funds, to defer capital gains taxes. Bessent’s confirmation hearing is expected to examine both his financial interests and his views on digital assets and economic policy.

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