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On Monday, President Donald Trump signed an executive order to establish the nation’s sovereign wealth fund. This action has already generated interest regarding possible Bitcoin purchases.
The executive order instructs the US Treasury and Commerce Departments to deliver a plan “within 90 days” for the establishment of a sovereign wealth fund.
“We have tremendous potential,” President Trump remarked while signing the order from the Oval Office.
“I believe that in a short period, we could have one of the largest funds,” the President added.
Several US states, including Texas and Alaska, already maintain their own sovereign wealth funds. However, the country as a whole does not currently operate one.
Bitcoin proponents view this move as a positive indication towards the long-sought concept of a U.S. strategic Bitcoin reserve. Last month, Trump indicated that he is considering the establishment of a federal Bitcoin stockpile.
The executive order includes specifics on how the fund would function or be financed. Trump noted that the fund could be supported through tariffs and other financial sources.
In response to the announcement, Bitcoin advocate Senator Cynthia Lummis stated that the order is a “big deal.”
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It is a ₿ig deal. https://t.co/ZShfQcEGwc
— Senator Cynthia Lummis (@SenLummis) February 3, 2025
Lummis’s comment suggests that the wealth fund could serve as a precursor to a U.S. government Bitcoin reserve.
Sovereign Wealth Funds Have Significant Exposure to Crypto
According to K33 Research, the Norwegian sovereign wealth fund (NBIM) holds 3,821 BTC as of January 2025, an increase of 1,375 BTC since June 30, 2024.
“NBIM’s indirect exposure is one of the strongest examples of how BTC is integrating into any well-diversified portfolio, and the growth is a testament to the market maturing and BTC becoming part of any well-diversified portfolio,” the head of research stated on X.
The Norwegian sovereign wealth fund (NBIM) indirectly holds 3,821 BTC, reflecting an increase of 1,375 BTC since June 30, 2024, and a yearly growth of 2,314 BTC—a 153% rise compared to its end-of-year 2023 holdings.
It is important to highlight that this exposure likely… pic.twitter.com/seQ12cM2Rn— Vetle Lunde (@VetleLunde) January 29, 2025
Additionally, Abu Dhabi’s sovereign wealth fund has been investing in digital assets.
Although Bitcoin or cryptocurrency was reportedly not mentioned during Trump’s signing, the fund could serve as a vehicle for the government to acquire and hold Bitcoin.
The post President Trump Signs Executive Order Calling for US Sovereign Wealth Fund Creation appeared first on Cryptonews.
