Trump unveils sovereign wealth fund plan; crypto-linked advisors spark Bitcoin speculation

President Donald Trump announced plans to establish a US sovereign wealth fund on Monday, which, early signs suggest, could be backed by Bitcoin.

While details remain unclear, the involvement of Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent — both vocal crypto advocates — has fueled speculation that Bitcoin could play a role in the fund’s structure.

Lutnick — CEO of trading firm Cantor Fitzgerald and a longtime Bitcoin supporter — suggested the fund could acquire equity stakes in companies doing business with the government, citing hypothetical COVID-19 vaccine deals as examples. He separately floated the idea of using the fund to facilitate a TikTok takeover but provided no specifics. 

Bessent, who manages US$15 billion in assets through his hedge fund Key Square and has publicly endorsed Bitcoin’s scarcity value, described the initiative as a mix of “liquid assets” to benefit citizens.

The proposal draws parallels to Norway’s US$1.6 trillion oil-revenue fund — the world’s largest — which invests in global equities. Trump emphasized the US version would “create value for American citizens” but offered no timeline beyond Lutnick’s estimate of up to one year for implementation.

Analysts note Lutnick’s and Bessent’s crypto enthusiasm has intensified scrutiny of the fund’s potential asset mix. Cantor Fitzgerald — led by Lutnick since 1991 — began offering Bitcoin-backed loans in 2023, while Bessent called Bitcoin “digital gold” at a 2024 investor conference. Neither official directly mentioned cryptocurrency in Monday’s remarks.

Pro-crypto Wyoming Senator Cynthia Lummis dropped a cheeky hint on X that the fund could involve Bitcoin.

While the fund’s Bitcoin ties remain speculative, involvement from crypto-positive advisors could reinforce institutional acceptance. Investors will monitor whether the initiative accelerates government-held Bitcoin reserves.

Disclaimer: The content on this website is for informational purposes only and does not constitute financial, investment, or legal advice. Always consult a qualified professional before making financial decisions.

Share this Post:

Accessibility Toolbar