Trump Announces Plans for US Sovereign Wealth Fund to Benefit American Citizens
On February 3, President Donald Trump unveiled plans to establish a U.S. sovereign wealth fund, an investment vehicle aimed at generating and distributing financial assets for the American people.
During a White House event, Trump signed an executive order instructing Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick—both known for their pro-crypto stance—to initiate the process of creating the fund.
“We’re going to generate significant wealth for this fund,” Trump told reporters. “It’s long overdue for America to have its own sovereign wealth fund.”
A National Investment Strategy
According to Treasury Secretary Bessent, the fund will comprise a mix of liquid assets and other strategic holdings within the U.S. economy. “Our goal is to unlock the potential of these assets and ensure they benefit the American people,” he said, adding that the fund is expected to be operational within the next 12 months.
Commerce Secretary Lutnick suggested that the fund could be used for strategic investments, including potential acquisitions such as a U.S.-led takeover of the Chinese social media giant TikTok. Additionally, it may allow the U.S. government to leverage its massive purchasing power to secure equity stakes in major corporations.
“The sheer size and influence of the U.S. government—combined with the vast business transactions it conducts—should create real value for American citizens,” Lutnick explained.
Several nations, including Norway, China, Saudi Arabia, Australia, Iran, and Russia, already operate sovereign wealth funds, often built on revenues from natural resources or state-owned assets.
Bitcoin and the Sovereign Wealth Fund
Following the announcement, Wyoming Senator Cynthia Lummis hinted that Bitcoin (BTC) could be incorporated into the fund’s portfolio. However, if BTC is included, it may come from the substantial Bitcoin reserves already held by the U.S. government rather than through additional purchases.
As per data from Blockchain.com, an FBI-controlled address linked to Silk Road-related seizures still holds approximately 69,370 BTC, valued at around $6.8 billion at current prices. According to BiTBO, total U.S. government Bitcoin holdings exceed 207,000 BTC, worth more than $20 billion.
Bitcoin Price Volatility Amid Market Developments
Crypto markets showed signs of recovery after Trump’s tariff suspensions earlier in the week. Bitcoin surged to an intraday high of $102,000 before retreating to $99,000 at the time of writing, suggesting that the rebound may be short-lived.
Meanwhile, altcoins focused on AI and real-world asset tokenization experienced significant gains, though Ethereum (ETH) struggled to surpass the $3,000 mark, despite receiving public support from Eric Trump.
The establishment of a U.S. sovereign wealth fund could mark a significant shift in national economic strategy, with potential implications for government investments, financial markets, and the broader cryptocurrency landscape.
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