U.S. President Donald Trump signed an order to establish a U.S. sovereign fund, sparking interest in the crypto industry over potential Bitcoin inclusion.
What Is a Sovereign Wealth Fund?
Sovereign wealth funds (SWF) are state-owned investment funds that reinvest government revenues into various assets such as stocks, bonds, and real estate.
How Will the U.S. Fund It?
Unlike resource-rich nations, the U.S. operates with a budget deficit. Trump suggested using tariffs and other revenue streams to finance the fund.
Bitcoin and the U.S. Sovereign Wealth Fund
Digital assets may be part of the fund's strategy, given the financial expertise of Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick, known for their Bitcoin support. Senator Cynthia Lummis expressed support, mentioning Bitcoin in the context of the fund.
The U.S. sovereign fund could become a significant milestone for the country and potentially includes cryptocurrencies, drawing interest in both financial and crypto markets.
