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All they have seized are not their investments and we have no account on what exactly they are doing with those asset seized and sold, more so, the US government is not the highest holder, because they don't invest neither do they support for bitcoin adoption or use as a legal tender, they have been rather busy going about instituting regulations, sanctions seizures and tax on all bitcoin related activities.
While India owns the most bitcoin based on their actual number of crypto owners, the US government still got the highest bitcoin ownership which were all seized from criminals. So it’s not that they actually value the huge amount of bitcoin because they see it as an investment or currency, but more on these confiscated bitcoins are just being used as evidence or proceeds of the crime. They don’t hold bitcoins to say that they are pro-bitcoin, instead they are always against with how the nature of bitcoin works.