Trump signs executive order to establish sovereign wealth fund, which may become a significant vehicle for government holding of cryptocurrencies
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Trump signs executive order to establish sovereign wealth fund, which may become a significant vehicle for government holding of cryptocurrencies
On February 3, U.S. President Trump signed an executive order planning to establish America's first sovereign wealth fund within the next year. Treasury Secretary Bessent stated that the fund would create value by leveraging the U.S. balance sheet. The order requires the Treasury and Commerce Departments to submit specific proposals on financing mechanisms, investment strategies, and governance models within 90 days. Bitcoin supporter Senator Lummis responded positively on social media, hinting at the possibility of investing in bitcoin, sparking market attention. Currently, the world's largest sovereign fund, Norway's Sovereign Wealth Fund, indirectly holds about $400 million in bitcoin, while the Abu Dhabi Sovereign Fund has also frequently invested
Navigating Web3 tides with focused insightsTechFlow news, on February 3, U.S. President Trump signed an executive order to establish the country's first sovereign wealth fund within the next year. Treasury Secretary Bessent stated that the fund will create value by leveraging the U.S. balance sheet. The order requires the Treasury and Commerce Departments to submit detailed proposals on financing mechanisms, investment strategies, and governance models within 90 days.
One possible implementation path is transforming the function of the U.S. International Development Finance Corporation (DFC). Trump has nominated Benjamin Black, managing partner of Fortinbras Enterprises, to lead the agency. However, experts point out that since the U.S. is currently running a deficit, establishing the fund and securing funding may require congressional approval. Trump previously suggested raising funds through tariffs and other means to support national priority projects such as infrastructure, manufacturing, and medical research.
Bitcoin supporter Senator Lummis responded positively on social media, hinting at the possibility of bitcoin investment, drawing market attention. Currently, the world's largest sovereign fund, Norway's Government Pension Fund Global, indirectly holds around $400 million in bitcoin, while the Abu Dhabi sovereign fund has been actively investing in crypto projects. After the announcement, bitcoin surged over 5%, breaking above $102,000.
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