Key Takeaways

• President Trump has ordered the creation of a US sovereign wealth fund to be established within a year.
• Speculation arises about the fund potentially investing in Bitcoin under Bitcoin advocate Howard Lutnick.

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President Donald Trump signed an executive order on Monday, instructing the Treasury and Commerce Departments to create a sovereign wealth fund within the next year. The move has sparked speculation about whether the fund could be used as a vehicle for US government Bitcoin acquisitions.While the executive order offers few details on how the fund will operate or be financed, Trump expressed optimism about its potential.

“We’re going to create a lot of wealth for the fund,” Trump told reporters, according to a Reuters report, adding that it’s “about time that this country had a sovereign wealth fund.”

Trump suggested the fund could be financed through tariffs and other revenue streams, despite the US running a budget deficit. The recent tariff announcements created a shock to the markets, with Bitcoin plunging below $91,000 on Sunday amid tariff fears. However, Bitcoin has since recovered, climbing back above $100,000.Commerce Secretary nominee Howard Lutnick’s involvement has added to the crypto-related speculation. Lutnick, the CEO of Cantor Fitzgerald, is a well-known Bitcoin advocate, with his firm serving as the custodian for Tether’s large holdings of US government securities. He has also publicly disclosed his personal exposure to Bitcoin, further fueling assumptions about the fund’s potential investment strategies.Senator Cynthia Lummis, a vocal supporter of Bitcoin, responded to the announcement, saying, “This is a ₿ig deal,” hinting that the sovereign wealth fund could serve as a mechanism for US government Bitcoin accumulation.Treasury Secretary Scott Bessent stated that the fund would be operational within the next 12 months, adding that the government plans to monetize the asset side of the US balance sheet for the American people. He emphasized that the strategy could involve a combination of liquid assets and domestic resources.Trump also mentioned the possibility of using the fund to acquire TikTok.

“We’re going to be doing something, perhaps with TikTok, and perhaps not,” he said. “If we make the right deal, we’ll do it. Otherwise, we won’t… we might put that in the sovereign wealth fund.”

The initiative expands on Trump’s campaign proposal to use a sovereign wealth fund for infrastructure projects, manufacturing, and medical research.

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