Trump Orders Creation of U.S. Sovereign Wealth Fund: Could Bitcoin Play a Role?

On February 3, 2025, U.S. President Donald Trump signed an executive order directing the Treasury and Commerce Departments to establish a sovereign wealth fund. The order outlines the government’s intention to leverage national assets to promote long-term fiscal sustainability and enhance U.S. economic leadership.

• President Donald Trump signed an executive order mandating the creation of a U.S. sovereign wealth fund on February 3, 2025.

• The Treasury and Commerce Departments will lead the development of the fund, with a plan due in 90 days.

• While Bitcoin was not explicitly mentioned, speculation is growing over whether the fund could include BTC holdings.

• The initiative aims to strengthen U.S. economic leadership and fund major national projects.

Source: WhiteHouse.gov

Speaking at the signing ceremony, Treasury Secretary Scott Bessent confirmed that the sovereign wealth fund would be created within 12 months. The executive order mandates a plan submission within 90 days, detailing funding mechanisms, investment strategies, and governance structures.

While the administration did not specify whether cryptocurrencies would be included, speculation has already begun about Bitcoin’s potential role in the fund’s asset mix. Wyoming Senator Cynthia Lummis hinted at this possibility on X (formerly Twitter), calling the executive order a “big deal” for Bitcoin.

Read more: What Is a Strategic Bitcoin Reserve and How Likely is It?

Unlike other sovereign wealth funds, which are often funded by budget surpluses or revenues from natural resources, the U.S. government has consistently run budget deficits. Secretary Bessent suggested that the fund could be financed by monetizing government-owned assets. Trump has also previously floated the idea of using tariff revenues as a potential funding source.

Currently, the U.S. federal government directly holds $5.7 trillion in assets, with even greater value tied to natural resources and infrastructure. The sovereign wealth fund could allow the government to manage these assets more efficiently, generating long-term wealth for national projects such as infrastructure development, manufacturing, and research initiatives.

Read more: The Race for Strategic Bitcoin Reserves: More U.S. States Move Toward Crypto Adoption

BTC/USDT price chart | Source: KuCoin

Trump’s announcement of the sovereign fund and delay of tariffs against Canada and Mexico helped Bitcoin recover above $100,000, allaying some of  the broader market uncertainty. As more details about the sovereign wealth fund emerge, crypto markets may react positively if Bitcoin is considered as part of the fund’s strategic assets.

Read more: BTC Bounces Back Above 101K, U.S. and Mexico Trade Tensions Ease Boosting Crypto, and More: Feb 4

One of the most debated aspects of this announcement is whether Bitcoin could be included in the fund’s portfolio. Commerce Secretary nominee Howard Lutnick, known for his pro-crypto stance, has been a vocal supporter of Bitcoin. His company, Cantor Fitzgerald, currently acts as the custodian for stablecoin giant Tether’s U.S. Treasury holdings.

Although Bitcoin was not explicitly mentioned during the announcement, both Bessent and Lutnick have expressed openness to crypto-related initiatives. The move aligns with Trump’s campaign promises, which included building a national Bitcoin reserve and encouraging domestic BTC mining.

Bitcoin advocate Wayne Vaughan also weighed in on the development, noting that both Bessent and Lutnick are crypto-friendly and could push for Bitcoin inclusion. If the U.S. were to establish a Bitcoin reserve within its sovereign wealth fund, it would be a major endorsement of BTC as a strategic asset.

Sovereign wealth funds exist worldwide, managing over $8 trillion in assets. Some of the largest funds include:

• Norway’s Government Pension Fund Global ($1.74 trillion)

• China Investment Corporation ($1.33 trillion)

• Abu Dhabi Investment Authority ($1.06 trillion)

• Kuwait Investment Authority ($803 billion)

• Saudi Public Investment Fund ($801 billion)

Trump has previously suggested that the U.S. sovereign wealth fund should exceed $2 trillion, making it the largest in the world. However, unlike many other funds that are backed by natural resource revenues, the U.S. fund would likely rely on a diversified asset base.

Despite its ambitious scope, the establishment of a U.S. sovereign wealth fund could face legal challenges. Trump’s executive orders have historically encountered pushback, and this initiative may require congressional approval, particularly if it involves large-scale asset transfers or new funding mechanisms. Additionally, if Bitcoin becomes part of the fund’s portfolio, regulatory scrutiny from agencies like the SEC and CFTC is almost certain. The structure and investment choices of the fund will be closely examined in the coming months.

The next 90 days will be pivotal as the Treasury and Commerce Departments finalize their proposal. Whether Bitcoin plays a role in the U.S. sovereign wealth fund remains to be seen, but the initiative represents a shift toward financial innovation and strategic investment. All eyes are now on how Trump’s economic policies will shape digital assets and sovereign investment strategies in the United States.