TLDR
- With a decisive executive action, Trump initiates the U.S.'s inaugural sovereign wealth fund, setting a 12-month deadline for its launch.
- The announcement sends Bitcoin prices soaring to $102,050, marking a 4% increase since the news broke.
- Senator Cynthia Lummis drops a teaser about Bitcoin involvement through a mysterious tweet saying '₿ig deal.'
- Norway's sovereign investment fund is reportedly tied to $400 million worth of Bitcoin assets, through indirect means.
- Newly nominated crypto leader David Sacks is set to hold his initial briefing on America's stance in the digital asset sector.
An unprecedented decision has been made as the U.S. gears up to launch its first-ever national sovereign wealth fund, thanks to an executive mandate signed by President Donald Trump earlier this week. This comes as cryptocurrencies gain renewed vigor, with Bitcoin prices climbing past $102,000.
The executive directive aims to create a U.S. sovereign wealth fund in 12 months, signifying a groundbreaking change in the nation's economic strategies. While states like Alaska and Texas have their funds, this would pioneer a federal equivalent.
Sovereign wealth funds, generally owned by governments, invest in a range of financial instruments like equities and real estate, drawing capital largely from state resources, aiming for long-term, sustainable gains for the nation.
The crypto community quickly reacted to the proclamation, especially after pro-crypto Senator Cynthia Lummis from Wyoming tweeted a '₿ig deal' mention, using Bitcoin's symbol. Known for her support of Bitcoin's federal adoption, Senator Lummis's stance is no surprise.
This is a ₿ig deal. https://t.co/ZShfQcEGwc
— Senator Cynthia Lummis (@SenLummis) February 3, 2025
The crypto markets were buoyed by the news, raising Bitcoin by 4% to reach $102,050. Other digital currencies surged too, with Ethereum rising by 12% above $2,800, and XRP, Dogecoin, and Cardano each gaining over 20%.
Analysts report a noticeable increase in U.S. investor buying pressure as seen in the Coinbase Premium Gap's record high in 2025. This metric, comparing Bitcoin's price on Coinbase with other exchanges, indicates a growing American demand.
Interest has spiked regarding the interplay between this new sovereign wealth fund and cryptocurrency ventures. Norway's vast sovereign wealth fund already maintains a Bitcoin position valued at nearly $400 million per K33 Research, echoing trends from Abu Dhabi's regular crypto investments.
Norway's wealth vehicle (NBIM) now indirectly holds 3,821 Bitcoins, marking a rise of 1,375 BTC since mid-2024, indicating an impressive 153% growth from its end-2023 holdings.
It warrants noting that this form of exposure likely... pic.twitter.com/seQ12cM2Rn— Vetle Lunde (@VetleLunde) January 29, 2025
Boosting the buzz, fresh appointee, AI and crypto authority David Sacks, will address his inaugural press meet on February 4th. His discourse will cover the U.S.'s evolving role in digital assets, with strategic perspectives on crypto and blockchain from the White House's vantage expected.
Throwing fuel on speculative flames, Eric Trump added his voice by stating on X: 'I think it's prime time to accumulate ETH.' Ripple's chief Brad Garlinghouse, conversely, argued that reserves should span a mixture of digital assets beyond just Bitcoin.
The sovereign wealth fund comes to light amid crypto market turbulence. Bitcoin has been volatile, briefly plunging to $90,000 before bouncing back above $100,000, driven by anxieties over Trump's trade strategies.
Expectation surrounds the forthcoming conference to tackle areas like policy regulation, incentives for innovation, and security at a national level. Congressional representation alongside Sacks suggests a united approach to crafting blockchain-related policies.
Nevertheless, experts caution that starting a sovereign wealth fund doesn't equate to government crypto investments. Although such funds can draw from federal coffer reserves, they haven't included crypto assets thus far.
The sovereign wealth fund initiative marks a significant change in U.S. economic policy, with its strategic investments and target sectors still undecided. The executive order lays out a year-long timeline to set its structure and investment goals.
New figures indicate a substantial rise in crypto transaction volumes post-announcement. The Coinbase Premium Gap signals potential positioning of U.S. institutional players ahead of possible policy shifts.
