The Sovereign Wealth Fund: Trump’s New Efforts To ‘Acquire Bitcoin Without Beauracracy’

Donald Trump has managed to capture the attention of the trading and financial world with some bombastic announcements. Firstly, Trump and his administration have decided that they want to levy aggressive tariffs on China, Canada, and Mexico.

Secondly, it signed an executive order to create a sovereign wealth fund. This order is passed on to create a consolidated fund for America to invest in. This effort will be headed by Treasury Secretary Scott Bessent and Commerce Secretary nominee Howard Lutnick.

In a press release, Trump sounded confident and added, “We have tremendous potential… I think in a short period of time, we’d have one of the biggest funds.” What intrigued the financial community was the possibility that crypto might be included in the list.

The Purpose Of The Sovereign Wealth Fund

The general purpose of creating a sovereign wealth fund is to create a nest egg. A form of investment vehicle owned by countries. These investments are meant to come in handy in the future. Therefore, it is a glorified means of creating funds for future development, something that individuals do in a localized way.

SWFs work similarly to pension funds for individuals. However, it comes with its subtle twist. Pension funds help individuals, and SWFs are meant to help a country in need. The money is rerouted in these funds in a way that allows governments to put their stake in companies or projects.

Currently, there are 90 active SWFs across the world. The cumulative valuation of these funds is close to $8 trillion. Some of the most prominent SWF account holders include Norway, China, and Saudi Arabia.

Inclusion Of Crypto As Assets 

The most interesting part about the whole conversation is the inclusion of cryptos for the first time. Given Trump’s stance on digital currency, it is highly likely that the Trump administration might push to include digital currencies.

Dany McCabe, Flexa CEO, in an interview with TheStreet Crypto, claimed, “Given the current administration’s well-articulated support of digital assets, it is highly likely the sovereign wealth fund announced today will include Bitcoin and possibly other U.S.-made digital assets that provide true economic utility, such as Ether.” 

 He further added, “Inclusion of digital assets like these would not only provide increased stability to the U.S. economy but would be a giant leap forward in making America the leader in the digital asset sector.”

Meanwhile, Austin King, co-founder of Omni Network, told TheStreet Crypto, “Trump [may be] setting up alternatives like this sovereign wealth fund to acquire Bitcoin without the bureaucracy.” 

Endnote: What Does This Mean?

This could lead to revolutionary outcomes for the future as this single move could legitimize the status quo of crypto as a real and valid investment opportunity. Therefore, it will be interesting to see how the Trump administration would go about its way.

Besides the optimism, investors must understand that including crypto as a legitimate investment element for SWF means that regulatory checks would also seep in. In other words, its movements might be under heavier surveillance.

Hence, the topic must be approached with a sense of caution at the moment.