On Feb. 3, President Trump introduced plans to create a US sovereign wealth fund, a nationwide funding car designed to generate and distribute belongings for Americans.
Trump signed the manager order at a White Home occasion directing Treasury Secretary Scott Bessent and Secretary of Commerce Howard Lutnick, who’re each pro-crypto, to “start a course of that may hopefully consequence within the creation of an American sovereign wealth fund.”
“We’re going to create a variety of wealth for the fund,” Trump instructed reporters earlier than including, “And I feel it’s about time that this nation had a sovereign wealth fund.”
The fund “shall be a mixture of liquid belongings, belongings that we now have on this nation as we work … to convey them out for the American folks,” stated Bessent, who added that it will likely be arrange inside the subsequent 12 months, according to NBC.
Bitcoin Backing?
The fund may very well be probably used to accumulate strategic belongings reminiscent of a possible takeover of the Chinese language social media platform TikTok, alluded Lutnick. It may additionally leverage the US authorities’s huge buying energy to achieve fairness in firms.
“The extraordinary measurement and scale of the U.S. authorities and the enterprise it does with firms … ought to create worth for Americans,” Lutnick stated. Different nations with massive sovereign wealth funds embody Norway, China, Saudi Arabia, Australia, Iran, and Russia.
In response to the information, Wyoming Senator Cynthia Lummis hinted that the fund may very well be used to purchase Bitcoin.
It is a ₿ig deal. https://t.co/ZShfQcEGwc
— Senator Cynthia Lummis (@SenLummis) February 3, 2025
Nonetheless, if the fund does embody BTC, it’s more likely to come from the stash that the USA already holds reasonably than shopping for extra.
In accordance with Blockchain.com, an FBI-owned tackle linked to Silk Road seizures nonetheless holds 69,370 BTC value round $6.8 billion at present market costs. Complete US holdings exceed 207,000 BTC value greater than $20 billion, according to BiTBO.
The US will purchase Bitcoin.
Trump simply introduced the creation of a US Sovereign Wealth Fund.
It will likely be headed by Secretary of Commerce @howardlutnick and Treasury Secretary @ScottBessent528. Each like Bitcoin.
I’d say there’s a 100% chance they purchase Bitcoin.
— Wayne Vaughan (@WayneVaughan) February 3, 2025
BTC Value Recovers
Crypto markets have recovered because the Trump tariffs had been suspended on Monday. BTC reclaimed $102,000 in an intraday excessive however has since retreated again to round $99,000 on the time of writing, because the bounce could have been short-lived.
AI and real-world asset tokenization altcoins had been additionally surging, however Ethereum remained lackluster, failing to prime $3,000 regardless of an endorsement from Eric Trump.
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