Trump’s Sovereign Wealth Fund: A Big Deal for Crypto?

President Donald Trump signed an executive order to create a US sovereign wealth fund (SWF).

The structure and financing of a US fund remain unclear, but the crypto market views it as a potential shortcut for US investments in crypto.

Trump Moves to Establish US Sovereign Wealth Fund

Donald Trump signed an executive order on Monday, directing the US Treasury and Commerce departments to create a sovereign wealth fund within the next three months.

A sovereign wealth fund is a state-owned investment vehicle to generate returns for national benefit. Typically funded by budget surpluses, SWFs invest in financial assets, supporting government budgets or social programs.

“The United States already holds a vast sum of highly valued assets that can be invested through a sovereign wealth fund for greater long-term wealth generation. The Federal government directly holds $5.7 trillion in assets,” the White House has stated .

While Trump provided few details, he suggested that tariffs on imports could help finance the US sovereign wealth fund. 

When created, the US would join nations managing over $332 billion in similar funds globally.

Crypto Hopes Rise

Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick, both crypto investors, will lead the initiative.

Although no specific mention of potential Bitcoin investments was made during the signing of the executive order, Senator Cynthia Lummis dropped a hint in her X post. The crypto-friendly senator added a Bitcoin symbol to her post, stating, “This is a ₿ig deal.”

The crypto community sees the creation of the SWF as a savvy move to enable America to invest in Bitcoin with fewer restrictions.

“This fund would have fewer controls and require less approval before making investments. Strategically, Trump is setting up a way to deploy funds with less red tape,” says New York entrepreneur Austin King. “It’s possible this fund could invest in BTC, XRP, SOL, and other U.S.-made cryptocurrencies.”

On the Flipside

• Last week, Federal Reserve Chairman Jerome Powell also confirmed that the Fed has no plans to make Bitcoin a strategic asset, leaving such decisions up to Congress.

Why This Matters

Expectations are high, especially considering Donald Trump’s favorable stance on Bitcoin as part of strategic reserves and his ambition to position the US as the global crypto capital.

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