Key dealers
- President Trump has ordered the creation of a US sovereign wealth fund to be set up within a year.
- Speculation arises if the fund that can potentially invest in bitcoin under Bitcoin Advocate Howard Lutnick.
President Donald Trump signed an executive order on Monday and instructed the Treasury and Trade Departments to create a superb wealth fund within next year.
The move has led to speculation if the fund can be used as a vehicle for US government bits.
While the executive order offers few details about how the fund will work or be financed, Trump expressed optimism about his potential.
“We will create a lot of wealth for the fund,” Trump told reporters, according to a Reuters Reportadds that it is “about the time that this country had a superb wealth fund.”
Trump suggested that the fund could be financed through customs and other income flows, even though the United States has a budget deficit.
The latest customs messages Created a shock for the markets, with Bitcoin that fell below $ 91,000 on Sunday in the middle of customs. However, Bitcoin has since recoveredclimb back over $ 100,000.
Trade Secretary nominated Howard Lutnick’s commitment has added the crypto-related speculation.
Lutnick, CEO of Cantor Fitzgerald, is a well-known Bitcoin advocate, with his company serving as custodian for Tether’s large holding of US government’s securities.
He has also publicly revealed his personal exposure to Bitcoin, which further drives assumptions about the Fund’s potential investment strategies.
Senator Cynthia Lummis, a vocal suspender of Bitcoin, responded to the announcement, favorable“This is a ₿ig business,” which suggests that Sovereign Wealth Fund can serve as a mechanism for the US government’s bitcoin accumulation.
Treasury Secretary Scott Bessent stated that the fund would be in operation within the next 12 months, leaving that the government plans to make money on the asset side of the US balance sheet for the US people.
He emphasized that the strategy could involve a combination of liquid assets and domestic resources.
Trump also mentioned the opportunity to use the fund to acquire TikTok.
“We will do something, maybe with Tiktok, and maybe not,” he said. “If we do the right business, we will. Otherwise we will not … We can put it in Sovereign Wealth Fund. “
The initiative expands Trump’s campaign proposal to use a superb wealth fund for infrastructure projects, manufacturing and medical research.