thecryptobasic.com
The price of Bitcoin rebounded above the $100,000 mark after U.S. President Donald Trump signed an executive order directing the creation of a sovereign wealth fund that could potentially hold BTC.
According to a White House press release, Trump charged the Treasury and Commerce departments with developing a plan within 90 days to create a sovereign wealth fund.
Sovereign Wealth Fund Plan
This plan will be developed by the Secretary of Commerce, the Secretary of Treasury, and other government officials. They include the Assistant to the President for Economic Policy and the Director of the Office for Management and Budget.
Notably, the plan will outline the sovereign wealth fund’s economic benefits, investment strategies, and governance structure. This initiative aims to enhance the United States’ long-term economic competitiveness while promoting fiscal sustainability. It will also boost the stewardship of U.S. wealth by leveraging the country’s vast assets.
Once created, the fund could help the U.S. mitigate tax burdens on residents, strengthen the country’s global leadership, and promote its economic security.
Similar Efforts
The press release acknowledged that several countries and some U.S. States have already established sovereign wealth funds. Specifically, it mentioned the United Kingdom among the countries currently developing this fund.
Interestingly, the announcement disclosed that 23 states in the U.S. are collectively managing $332 billion in assets across their respective sovereign wealth funds.
Expectedly, the proposal has been applauded by crypto enthusiasts and policymakers, with Senator Cynthia Lummis (R-WY) characterizing the order as a ‘big deal.’
This is a ₿ig deal. https://t.co/ZShfQcEGwc
— Senator Cynthia Lummis (@SenLummis) February 3, 2025
Potential Bitcoin Exposure
For context, a sovereign wealth fund is a state-owned investment fund used to manage a country’s investments and assets. Although the order did not explicitly mention Bitcoin, several crypto proponents speculate that it could potentially create a way for the United States government to buy and hold digital assets like BTC.
Amid this speculation, the price of Bitcoin, which initially plunged below $92,000 on Sunday night, rebounded above the $100,000 level to an intraday high of $102,514. Currently, Bitcoin is trading at $100,260 per BTC, with a 24-hour gain of 5.61%.
US Sovereign Wealth Fund Could Launch in 12 Months
It is worth noting that Trump signed the executive order in the presence of key government officials, such as Treasury Secretary Scott Bessent.
Commenting on the development, Bessent projected that he expects the U.S. to create the sovereign wealth fund within a year. He emphasized that the Trump administration will help the American people manage the country’s assets via the fund, which he claims will hold several U.S.-based liquid assets.
Whether the fund will invest in cryptocurrencies like Bitcoin remains to be seen. In the meantime, the U.S. government is currently evaluating whether to create a national digital asset reserve that could hold Bitcoin and other cryptos like XRP.
The analysis began last month after Trump signed an executive order creating a working group for the digital asset market.