Matthew Sigel, head of research at VanEck, has introduced a new idea that mixes Bitcoin
$84,856.07
with US government bonds.
Speaking at a Strategic Bitcoin Reserve Summit 2025 on April 15, he suggested a product called “BitBonds”, a type of 10-year Treasury bond that includes a small portion tied to Bitcoin’s value.
Under this proposal, each bond would be made up of 90% traditional government debt and 10% exposure to Bitcoin. Sigel believes this setup could help the US lower borrowing costs and attract more buyers, especially with around $14 trillion in government debt coming due in the next few years.
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He explained that interest rates are currently high, and to keep investors interested, the government needs to offer more than just the usual terms. Including Bitcoin may appeal to buyers looking for a way to protect themselves from inflation.
Even in a worst-case scenario, where Bitcoin loses all its value, Sigel said BitBonds could still save the government money. If these bonds are issued with a 1% or 2% interest rate, that is still cheaper than the current market rate of 4%.
If Bitcoin grows in value and provides more than a 4.5% return per year, those extra profits would be split equally between the bondholder and the government.
However, Sigel also noted that Bitcoin would need to grow quickly enough for investors to compensate for the lower regular bond returns.
On April 14, Bo Hines, who leads the Presidential Council of Advisers for Digital Assets, outlined options to grow Bitcoin reserves without using taxpayer money. What are they? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
