Key Takeaways
- Trump signed an order to establish a U.S. sovereign wealth fund.
- The fund may become one of the world's largest, per Trump.
- Funding sources remain unclear amid U.S. budget deficits.
On February 3, 2025, President Donald Trump signed an executive order directing the Treasury and Commerce Departments to create a U.S. sovereign wealth fund.
The fund aims to generate long-term financial returns by investing in national projects and strategic assets.
Trump’s vision
Trump suggested that the fund could become one of the largest globally and hinted at its potential involvement in acquiring a stake in TikTok’s U.S. operations.
Trump stated in the Oval Office:
I think in a short period of time, we’d have one of the biggest funds. And you know, some of them are pretty large. I think it’s about time that this country had a sovereign-wealth fund.
Implementation timeline & structure
Treasury Secretary Scott Bessent expressed confidence in establishing the fund within 12 months.
The executive order outlines that the fund will be modeled on best practices from existing sovereign wealth funds, incorporating various liquid and U.S. assets.
However, key details on financing remain unclear.
Sovereign wealth funds are typically funded through surplus revenues from natural resources, but the U.S. faces significant budget and trade deficits.
Cryptocurrency considerations
Senator Cynthia Lummis (R-WY), a vocal supporter of Bitcoin and financial innovation, reacted to the announcement with a tweet saying:
This is a ₿ig deal.
This is a ₿ig deal. https://t.co/ZShfQcEGwc
— Senator Cynthia Lummis (@SenLummis) February 3, 2025
The administration has not yet clarified whether Bitcoin or other digital assets would play a role in the fund’s strategy.
Significance
The establishment of this fund represents a major move by the U.S. government to create a state-owned investment vehicle focused on national economic growth.
