Trump Orders Creation of U.S. Sovereign Wealth Fund, raising implicit for government bitcoin effects

Trump Orders Creation of U.S. Sovereign Wealth Fund 

President Trump has signed an executive order to create a U.S. Sovereign Wealth Fund, with the Treasury and Commerce Departments leading the effort. While the fund doesn’t mention bitcoin specifically, its creation opens up the possibility for the government to acquire and hold bitcoin as part of its portfolio. 

What Is a Sovereign Wealth Fund? 

A sovereign wealth fund is a government-owned investment tool designed to manage public savings and generate long-term wealth. These funds are used to invest in global assets like stocks, bonds, real estate, and more. The U.S. fund could even venture into emerging tech sectors like cryptocurrency. 

Key Figures Behind the Fund 

Treasury Secretary Scott Bessent has shown caution toward cryptocurrencies, focusing on their role in the broader financial system. On the other hand, Commerce Secretary nominee Howard Lutnick is a vocal supporter of digital assets and could push for including bitcoin in the fund, given his ties to the crypto world. 

Could the U.S. Government Buy Bitcoin? 

Although bitcoin is not directly mentioned, the fund could serve as a platform for the U.S. to acquire bitcoin. With more institutional investors embracing bitcoin as "digital gold," the U.S. could diversify its assets and position itself as a leader in the digital economy. 

Bitcoin’s Reaction & Future Implications 

Following the announcement, bitcoin's price surged slightly to nearly $99,600. Governments worldwide are exploring ways to integrate cryptocurrencies, and the U.S. is in a prime position to lead. While it’s unclear if bitcoin will be included, the fund could reshape global finance and stability.