U.S. President Donald Trump has signed an executive action to establish the country's first sovereign wealth fund, led by financial experts known for their interest in cryptocurrencies, particularly Bitcoin.
What Is a Sovereign Wealth Fund?
Sovereign wealth funds (SWFs) are state-owned investment funds that reinvest government revenues into various assets like stocks, bonds, and real estate. These funds are usually funded by natural resource profits or trade surpluses.
How Will the U.S. Fund It?
Unlike resource-rich countries, the U.S. operates with a budget deficit. Trump suggested that tariffs and other revenue streams could help finance the fund. Recent tariff announcements have already impacted financial markets.
Bitcoin and the U.S. Sovereign Wealth Fund
Financial figures like Cantor Fitzgerald's CEO Howard Lutnick, appointed to lead the fund, have expressed support for Bitcoin, sparking speculation that it might be part of the fund's strategy.
The establishment of the U.S. Sovereign Wealth Fund could mark a new phase in national asset management, potentially including digital assets such as Bitcoin in its strategy. A strategy to be developed in the next 90 days will define the fund's future structure and governance.
