Trump Launches U.S. Sovereign Wealth Fund: A New Era for Infrastructure and Crypto?

President Donald Trump has signed an executive order directing the Treasury and Commerce Departments to establish the first U.S. sovereign wealth fund. The order aims to "monetize the asset side of the U.S. balance sheet" and is expected to be established within the next 12 months. The fund will include a combination of liquid assets to benefit Americans.

The fund is set to be financed through tariffs and other unspecified sources, with the aim of investing in infrastructure projects such as highways, airports, manufacturing hubs, and medical research. This approach contrasts with traditional sovereign wealth funds, which typically rely on budget surpluses.

While the executive order does not specifically mention cryptocurrencies or digital assets, there is speculation about how the sovereign wealth fund might intersect with the crypto market. If the U.S. sovereign wealth fund begins to embrace blockchain-based assets, it could provide legitimacy to Bitcoin (BTC) or tokenized treasury bonds as components of a government-supported investment strategy. Conversely, there are concerns that a state-managed fund could lead to increased regulation or create competition with decentralized finance.

Just a few days earlier, on January 23, 2025, President Trump signed another crypto-related executive order. This order canceled previous directives concerning central bank digital currencies and prohibited federal agencies from creating or promoting them. It also established a group responsible for proposing a federal regulatory framework for digital assets within 180 days.

With global sovereign wealth funds managing over $8 trillion, the U.S.'s foray into this sector could transform financial markets and potentially alter the crypto landscape—depending on the role digital assets play in its investment strategy.