President Donald Trump issued an executive order on Feb. 3 to create a sovereign wealth fund for the United States.
Trump said the initiative would enhance fiscal sustainability, ease tax burdens for American families and businesses, and secure long-term economic stability. He also noted that the fund would reinforce the United States’ global financial and strategic influence.
The executive order stated:
“It is in the interest of the American people that the Federal Government establish a sovereign wealth fund to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish economic security for future generations, and promote United States economic and strategic leadership internationally.”
As part of the directive, the Treasury and Commerce Secretaries must submit a comprehensive plan within 90 days.
Their report should outline funding mechanisms, investment strategies, governance structures, and potential legislative requirements. Additionally, they must assess the legal considerations of establishing and managing the fund.
What is a sovereign wealth fund?
Sovereign wealth funds are state-owned investment entities designed to manage national wealth. Notable examples of these funds include Norway’s Government Pension Fund and the China Investment Corporation.
These funds typically serve as financial reserves or economic development tools, ensuring long-term prosperity. They invest collectively for national benefit, and many governments use these funds to acquire stakes in companies, purchase financial products, and finance public programs.
According to Sovereign Wealth Fund Institute data, over 100 sovereign wealth funds globally manage more than $13 trillion in assets.
Crypto market reacts
Although Trump’s executive order did not mention Bitcoin, several crypto analysts have speculated that the fund could allocate capital to BTC.
This assumption stems from the individuals overseeing the fund, who are known to support Bitcoin. Bitcoin analyst Joe Consorti highlighted that Trump appointed Howard Lutnick and Scott Bessent to spearhead the fund’s development.
Both figures have expressed pro-Bitcoin views, fueling expectations of potential crypto investments. Lutnick currently serves as Commerce Secretary, while Bessent oversees the Treasury.
Apollo Stats co-founder Thomas Fahrer suggested that the US Sovereign Wealth Fund could quickly reach $5 trillion in assets under management. He noted that Norway’s fund holds $2 trillion despite serving a population of only six million people.
Fahrer argued that a 10% Bitcoin allocation would be reasonable, potentially leading to a $500 billion investment over the coming years.
Despite this speculation, crypto bettors on Polymarket remain skeptical about the fund’s near-term Bitcoin exposure. According to current betting trends, there is only a 14% probability that the fund will invest in Bitcoin before July.
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