On February 3, President Donald Trump unveiled plans to establish a U.S. sovereign wealth fund, a national investment vehicle aimed at generating and distributing wealth for American citizens. This major announcement came during a White House event where Trump signed an executive order, marking the beginning of a new initiative that could have significant economic impacts for the country.
The U.S. sovereign wealth fund will be created under the guidance of Treasury Secretary Scott Bessent and Secretary of Commerce Howard Lutnick, both of whom are known for their pro-crypto stance. The primary goal of the fund will be to accumulate and allocate assets in a way that benefits American citizens directly.
“We’re going to create a lot of wealth for the fund,” Trump stated, emphasizing the importance of such a fund for the country. “And I think it’s about time that this country had a sovereign wealth fund.”
According to Bessent, the fund will consist of liquid assets, many of which are already held within the U.S. While specific plans are still in the works, Bessent confirmed the fund would be set up within the next 12 months.
Potential Use of the Sovereign Wealth Fund
One of the key uses of the new wealth fund could be the acquisition of strategic assets, such as the potential takeover of Chinese social media platform TikTok. Secretary Lutnick hinted at this possibility, as the U.S. government’s purchasing power would allow it to acquire stakes in valuable companies.
Lutnick also highlighted the importance of leveraging the size and scale of the U.S. government’s business dealings to create value for American citizens, likening it to other nations with large sovereign wealth funds, including Norway, China, Saudi Arabia, and Russia.
Could the U.S. Sovereign Wealth Fund Invest in Bitcoin?
In response to the announcement, Wyoming Senator Cynthia Lummis raised the possibility of the U.S. sovereign wealth fund including Bitcoin as part of its assets. While this remains uncertain, it is likely that any BTC holdings would come from the United States’ existing stash rather than new purchases.
The U.S. government already holds a significant amount of Bitcoin, with an FBI-linked address still holding 69,370 BTC from past Silk Road seizures, worth approximately $6.8 billion at current market prices. Total U.S. Bitcoin holdings exceed 207,000 BTC, valued at over $20 billion, according to Blockchain.com and BiTBO.
Bitcoin Market Reaction
Bitcoin’s price has seen some fluctuation following the announcement. After the suspension of Trump-era tariffs on February 3, BTC reached an intraday high of $102,000, although it has since retreated to around $99,000. Despite the volatility, the market’s recovery signals optimism for Bitcoin’s future performance.
Other cryptocurrencies, such as AI-focused altcoins and tokenized real-world asset projects, have also experienced growth, while Ethereum has struggled to break past the $3,000 mark, even after receiving an endorsement from Eric Trump.
