Trump Orders US Sovereign Wealth Fund, Bitcoin Hopes Soar

President Donald Trump signed an executive order on February 3, calling for the creation of a sovereign wealth fund. This move signals an increased focus on strategic financial reserves, following his previous order establishing a national digital asset stockpile.

The executive order directs the Secretary of the Treasury and the Secretary of Commerce to devise a comprehensive plan within 90 days for creating the fund. The order states that the United States can leverage such returns to promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish long-term economic security, and promote US economic and strategic leadership internationally.

Sovereign wealth funds are state-owned investment funds that manage surplus reserves, typically sourced from trade surpluses, commodity revenues, or fiscal excesses. These funds are invested in a diverse range of assets, including stocks, bonds, real estate, and infrastructure, both domestically and internationally, with the goal of ensuring long-term financial stability and economic growth.

The announcement sparked enthusiasm among Bitcoin advocates, as Senator Cynthia Lummis, a well-known advocate for Bitcoin and cryptocurrencies, reacted to the news on X (formerly Twitter). Her use of the “₿” symbol fueled hopes of Bitcoin’s inclusion in the fund.

“After Trump signs the order, US will buy Bitcoin for sovereign wealth fund and they will call it as strategic Bitcoin reserves,” one user replied on X.

Notably, the market odds of Trump establishing a Bitcoin reserve in the first 100 days on the prediction platform Polymarket improved to 18% after the order. The odds plummeted from 48% on Inauguration Day to 13% by February 1.

Trump’s earlier executive order on the digital asset stockpile also broadly defined “digital assets” without explicitly mentioning Bitcoin. The order stated that the term “digital asset” refers to any digital representation of value that is recorded on a distributed ledger, including cryptocurrencies, digital tokens, and stablecoins.

Meanwhile, several US states are advancing their own cryptocurrency initiatives. Oregon, New Jersey, Mississippi, and Indiana have recently introduced bills to foster crypto adoption and regulatory clarity.

Oregon’s HB2071 grants blockchain users specific rights, preventing state and local governments from restricting digital asset activities and exempting certain blockchain transactions from the Oregon Money Transmitters Act.