President Donald Trump‘s newly announced crypto strategic reserve has even some industry advocates skeptical over the short-term impacts of establishing a federal stockpile of Bitcoin, Ethereum and three other smaller cryptocurrencies known as “altcoins.”

The White House held its first-ever crypto summit on Friday, a day after Trump signed an executive order establishing a government reserve of bitcoin that would retain an estimated 200,000 bitcoins seized as part of criminal and civil proceedings.

Strategic reserves are meant to stabilize U.S. interests like national defense or economic security. The government already stockpiles assets like petroleum and gold. Trump’s recent actions represent a historic moment of legitimization for the crypto markets, recognizing them as “digital gold” alongside traditional reserves, and further underscore his embrace of the digital assets.

Trump also appointed former PayPal executive and venture capitalist David Sacks as his “crypto czar” in December. Sacks previously backed all of the top five cryptocurrencies that have been marked for the strategic reserve. He says he has since divested his holdings.

Jonathan Rose, the CEO of Blocktrust IRA, told Newsweek Trump’s order “will position the United States as a global leader in government digital asset strategies, as well as allow the government to participate in one of the fastest growing assets of all time.”

But while Rose said the action would give the U.S. the “world’s largest government cryptocurrency reserve,” he acknowledged that some crypto bulls may be disappointed that the U.S. isn’t buying bitcoin with taxpayer money, and rather just keeping bitcoin that’s been seized from criminal enterprises.

“By declining to spend taxpayer funds on bitcoin at this time, the President avoids potential criticism or opposition from citizens or opponents who may try to paint this move as a ‘gamble’ with taxpayers’ money,” Rose said. “The government aims to make any additional bitcoin acquisitions ‘budget neutral’ therefore laying the foundation to find creative ways to add to the government’s bitcoin reserve while maintaining their core focus of balancing the budget.”

Ryan Rasmussen, head of research at Bitwise, told Newsweek the markets were “still digesting the news in the short-term,” but noted that he’s a “firm believer” Trump’s actions would be “bullish for bitcoin and the crypto market long-term.”

Vatom founder Eric Pulier also said that short-term fluctuations in crypto are to be expected, calling it a “fool’s errand” to constantly second guess those ups and downs.

“The crypto markets are highly manipulated by whales and market makers for their own purposes, and often act counter-intuitively to news — even if the news is highly positive or negative in the long term,” Pulier told Newsweek. “So for those ‘betting’ or day trading on the crypto market, the news of a national crypto reserve should not be used to inform immediate trading.”

He agreed with Rasmussen, saying that the announcement of a strategic reserve was “certainly positive” for crpyto in the long run and that the reserve “confers a certain stamp of legitimacy” on a market that has long been viewed negatively by much of the public.

“The median view is that bitcoin is toxic, bad, and for criminals. It’s an extraordinary step to go from that to the greatest country on earth saying it’s a strategic reserve asset worth owning,” Rasmussen said.

The researcher added that the president’s recent actions are a way for Trump to maintain campaign promises he made to a “large constituency of single-issue crypto voters who voted for him on the premise that he would deliver a Strategic Bitcoin Reserve.”

“This was just one of many promises, including removing Gary Gensler as SEC Chairman and positioning the U.S. as the ‘crypto capital of the world,'” Rasmussen said.

Pulier said that he believes the embrace of crypto could encourage “broader institutional and retail participation” in the space.

“The establishment of both the bitcoin strategic reserve and the digital asset stockpile have laid the foundation for increased governmental acceptance and adoption of cryptocurrency as a core asset class moving forward,” Rose echoed.

“President Trump’s strategy shows that he and his advisors not only have a clear plan, but also a legitimate high-level understanding of the crypto market. The future of crypto shines very bright.”