President Donald Trump has signed an executive order (EO) initiating the creation of a U.S. sovereign wealth fund, igniting speculation about whether Bitcoin (BTC) could be included in its asset portfolio.
Trump’s Sovereign Wealth Fund: A Game Changer?
The EO, announced on Feb. 3, tasks Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick with developing a strategy to monetize U.S. government assets over the next 12 months.
- Funding sources and investment strategies remain unclear, but speculation is growing about digital assets being part of the mix.
- Wyoming Senator Cynthia Lummis hinted on X that Bitcoin could be considered for the fund’s holdings.
- Bitcoin advocate Wayne Vaughan noted that Bessent and Lutnick are both pro-Bitcoin, fueling speculation about potential crypto involvement.
Bitcoin’s Role in the Sovereign Wealth Fund?
Sovereign wealth funds are typically associated with resource-rich nations like Norway and Saudi Arabia, but Trump’s version may focus on acquiring strategic assets.
- One rumored target is TikTok’s U.S. operations, which faces legal pressure to divest from China’s ByteDance.
- Bitcoin proponents argue that BTC could serve as a hedge against inflation and economic instability, reinforcing the case for its inclusion in the fund.
- Trump’s campaign promises included building a Bitcoin stockpile, protecting BTC mining in the U.S., and blocking a central bank digital currency (CBDC).
Legal Challenges and Market Reaction
Trump’s executive orders frequently face legal pushback, and this one is expected to be contested:
- Legal experts question whether an EO alone can establish a financial entity of this scale without congressional approval.
- The U.S. courts have already blocked or challenged multiple Trump EOs, including his attempt to revoke birthright citizenship.
Bitcoin Price Fluctuations Amid Policy Moves
Bitcoin reacted to the news with volatility:
- BTC briefly dipped below $100,000 over the weekend after Trump announced new tariffs on Canada, China, and Mexico.
- Bitcoin rebounded past $101,000 after the sovereign wealth fund EO gained traction in the media.
If successfully implemented, the fund could reshape both traditional and crypto markets. With growing lawmaker and advocate interest, Bitcoin could become part of the U.S. government’s financial reserves, marking a historic shift in policy.
While most attention is on Bitcoin’s potential inclusion, the bigger play could be Trump’s strategic asset acquisition agenda, including the rumored TikTok buyout. If the U.S. sovereign wealth fund absorbs key tech and financial assets, it could reshape global economic power dynamics, with Bitcoin acting as a digital reserve asset in a shifting financial landscape.