Trump Launches US Sovereign Wealth Fund, TikTok Bid Looms

President Trump Signs Executive Order To Create Sovereign Wealth Fund, Diversify US Investments

President Trump has signed an executive order to create a federal sovereign wealth fund. The fund, which will be established by the U.S. Treasury and Commerce Departments, could potentially be used to purchase the popular social media platform TikTok. The fund's purpose and additional uses have not been specified at the time of publishing, but Bloomberg reports that it will be created within the next 12 months.

Sovereign wealth funds are government-owned investment funds that typically invest surplus revenues, often from natural resources like oil, to grow wealth for the future. They diversify investments globally across stocks, bonds, real estate, and other assets, aiming to provide long-term financial stability, economic growth, and protection against economic shocks.

While states like Alaska have had their own sovereign wealth funds for years, the federal government itself has never utilized one. A number of nations already have sovereign wealth funds, including Norway, China, United Arab Emirates, Saudi Arabia, Singapore, Kuwait, Qatar, Australia, Russia, South Korea, and Chile.

Trump Orders Creation of Sovereign Wealth Fund

U.S. President Donald Trump signed an executive order Monday afternoon, directing the creation of a sovereign wealth fund. The Treasury and Commerce Departments are set to spearhead the effort. While bitcoin was not mentioned at the signing, the fund could conceivably house the government's bitcoin holdings.

Appearing alongside Trump in the Oval Office Monday, Treasury Secretary Scott Bessent said he expected the sovereign wealth fund to be created in the next 12 months. While bitcoin reportedly was not mentioned at the signing, a sovereign wealth fund could potentially be a vehicle through which the government might buy and hold the crypto.

Bitcoin rose modestly to $99,600 in wake of the executive order news.

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