President Donald Trump signed an executive order Monday to create America’s first sovereign wealth fund – a government-run investment fund.
The move will change how the US might manage its assets, putting it in line with countries like Norway and Saudi Arabia that use such funds to invest state money. President Trump even indicated that the fund could potentially buy TikTok.
The order tasks the Treasury and Commerce Departments to submit a detailed plan within 90 days. According to the Treasury Secretary, Scott Bessent, they aim to set up the fund within 12 months.
However, the big question is – will this Sovereign Wealth Fund include Bitcoin?
Understanding Trump’s Sovereign Wealth Fund plan
Sovereign wealth funds work like giant national investment accounts, typically used by countries that have large budget surpluses from sectors like oil revenue.
The executive order offers limited details about how the fund would actually work. The Treasury and Commerce Department has 90 days to submit this plan, which needs to cover funding sources, investment strategies, structure, and management rules.
The fund’s size could be substantial. The US president mentioned wanting it to compete with some of the world’s largest sovereign funds, which often exceed $1 trillion. This plan isn’t entirely new in Washington. During his campaign, Trump talked about using tariff money for national investments. The previous Biden administration had also considered creating a fund focused on strategic industries.
Will the Sovereign Wealth Fund include Bitcoin?
The fund’s specific investment strategies have not been detailed, but there is speculation that it could include Bitcoin holdings. Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick, both known for their favorable views on Bitcoin, are tasked with establishing the fund.
Lutnick, CEO of Cantor Fitzgerald, has been vocal about Bitcoin’s value, suggesting it should be treated as a commodity. This has led to conjecture that the sovereign wealth fund might incorporate Bitcoin into its portfolio.
Additionally, Wyoming Senator Cynthia Lummis, a prominent Bitcoin advocate, hinted that the establishment of the sovereign wealth fund could be significant for Bitcoin, further fueling speculation about potential government investment in the cryptocurrency.
While no official confirmation exists regarding the inclusion of Bitcoin in the US sovereign wealth fund, the involvement of pro-Bitcoin officials and recent political developments suggest that the fund could potentially lead to the accumulation of Bitcoin reserves by the US government.
The fund could potentially buy TikTok
Trump says he’s currently talking with several interested buyers about TikTok and expects to make a decision in February. “We’re going to be doing something, perhaps with TikTok, and perhaps not,” he explained. “If we make the right deal, we’ll do it. Otherwise, we won’t.”
The fund would put the US in the company of countries that already use such investment vehicles successfully. Many sovereign wealth funds, particularly in the Middle East and Asia, have grown into powerful financial forces.
If successful, the fund could create a new tool for managing national assets and competing with other countries’ sovereign funds in global markets. The 90-day planning period will be crucial in determining whether this vision can become a practical reality.
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