US President Donald Trump has signed an executive order directing the Treasury and Commerce Departments to create a sovereign wealth fund that could have significant impact on the country’s fiscal strategy.
Treasury Secretary Scott Bessent, who appeared in the Oval Office with Trump, said he expected the fund to be operational within the next 12 months. While details of the fund’s investment strategy remain unclear, its creation raises questions about potential allocations, including whether cryptocurrencies like Bitcoin (BTC ($101,515.56)) could play a role.
Commerce Secretary nominee Howard Lutnick, a strong supporter of digital assets, has long advocated for greater integration of crypto into traditional finance. Lutnick is the chairman of bond-trading giant Cantor Fitzgerald, which serves as custodian of a significant portion of Tether’s U.S. government bonds. He has also publicly disclosed significant personal investments in Bitcoin.
Related News: Cardano (ADA ($0.79)) Founder Hoskinson Signals Collaboration with Ripple (XRP ($2.70)) and a Surprise Altcoin
While BTC was not explicitly mentioned during the signing of the executive order, analysts speculate that a sovereign wealth fund could provide an avenue for the U.S. government to hold digital assets as part of its broader investment strategy.
Following the development, Bitcoin (BTC) made a sudden attack and reversed its decline during the day. At the time of writing, it is trading at $101,565.
*This is not investment advice.
Continue Reading: Is This Why Bitcoin Rallied Back? Donald Trump’s Action Will Be Much Talked About
