Trump Signs Order for Sovereign Wealth Fund: What It Means for Crypto

US President Donald Trump has signed an executive action directing officials to establish a U.S. sovereign wealth fund. 

While sovereign wealth funds are typically found in resource-rich nations like Norway and the UAE, the U.S. has never had a national-level investment fund of this kind.

What’s catching the crypto industry's attention is the leadership behind the fund—Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick. Both are known for their financial expertise and strong ties to Bitcoin. 

Bessent noted the strategy may include liquid assets and domestic resources.

Could this mean Bitcoin will be part of the fund’s portfolio?

What Is a Sovereign Wealth Fund?

Sovereign wealth funds (SWFs) are state-owned investment funds that reinvest government revenues into various assets, such as stocks, bonds, and real estate. Some SWFs are funded by natural resource profits, while others leverage trade surpluses.

How Will the U.S. Fund It?

Unlike oil-rich nations that use surplus revenues, the U.S. operates with a budget deficit. Trump has suggested that tariffs and other revenue streams could help finance the fund. Recent tariff announcements have already impacted financial markets, with Bitcoin briefly dropping below $91,000 before recovering above $100,000.

Some sources believe the administration could also explore public-private partnerships to bolster the fund’s resources.

Bitcoin and the U.S. Sovereign Wealth Fund

Why Bitcoin Advocates Are Paying Attention

Howard Lutnick, the CEO of Cantor Fitzgerald and Trump’s pick for Commerce Secretary, is a well-known Bitcoin supporter. His firm custodies Tether’s U.S. government securities, and he has publicly disclosed his personal Bitcoin investments.

Additionally, Senator Cynthia Lummis, a strong Bitcoin advocate, reacted to the announcement by saying, “This is a ₿ig deal,” suggesting that Bitcoin accumulation could be part of the fund’s strategy.

Under former SEC Chair Gary Gensler, the U.S. took an aggressive regulatory stance against crypto. But with Trump’s administration signaling a different approach, there’s growing speculation that Bitcoin and other digital assets could play a role in the sovereign wealth fund.

While there is no official confirmation, the possibility of Bitcoin being included in the fund has sparked debate. Some believe this could mark the beginning of U.S. government Bitcoin accumulation, following in the footsteps of nations like El Salvador.

What Happens Next?

90-Day Plan and a 12-Month Rollout

The executive action directs officials to submit a detailed plan within 90 days. This will outline:

• Investment strategies

• Fund structure and governance

• Potential legal hurdles

Treasury Secretary Scott Bessent has stated that the fund should be operational within the next 12 months. The government plans to monetize U.S. assets in a way that benefits the American public.

Trump has also hinted that the fund could be used to facilitate the acquisition of TikTok. 

"We’re going to be doing something, perhaps with TikTok, and perhaps not," he said.