"Trump's New Fund: A Bitcoin Boon?"

The Trump Administration has announced the creation of a National Investment Fund, marking a significant shift in U.S. financial policy. The executive order, signed by President Donald Trump on Monday, mandates the establishment of the first-ever U.S. sovereign wealth fund within the next 12 months.

Sovereign wealth funds are government-owned investment vehicles that typically invest state revenues in various assets such as stocks, bonds, and real estate. These funds aim to create sustainable long-term returns for their respective nations. While several U.S. states, including Alaska and Texas, currently operate their own wealth funds, this would be the first such fund at the federal level.

The announcement sparked immediate reaction from the cryptocurrency community, particularly after Senator Cynthia Lummis (R-WY) posted a message on X (formerly Twitter) calling it a "₿ig deal," using the Bitcoin symbol. The Wyoming senator, known for her pro-cryptocurrency stance, has been a vocal advocate for Bitcoin adoption at the federal level.

The crypto markets responded positively to the news, with Bitcoin's price increasing by 4% to reach $102,050. Other cryptocurrencies also saw gains, with Ethereum rising by 12% to surpass $2,800, while XRP, Dogecoin, and Cardano each gained more than 20% in value.

Market analysts have noted increased buying pressure from U.S. investors, as evidenced by the Coinbase Premium Gap reaching its highest level in 2025. This metric measures the price difference between Bitcoin on Coinbase and other exchanges, suggesting growing demand from American investors.

The potential connection between the new sovereign wealth fund and cryptocurrency investments has drawn attention from market observers. Norway's sovereign wealth fund, currently the largest in the world, already holds an indirect Bitcoin investment worth nearly $400 million, according to K33 Research. Similarly, Abu Dhabi's sovereign wealth fund has made regular investments in crypto projects and digital assets.

Adding to the market momentum, newly appointed AI and crypto czar David Sacks is scheduled to hold his first press conference on Tuesday, February 4. The conference will focus on America's leadership role in digital assets, with Sacks expected to outline the White House's strategic approach to cryptocurrency and blockchain technology.

The creation of the sovereign wealth fund comes during a period of high