Trump Signs Executive Order on Bitcoin—What It Means for U.S. Investors

Fundamentally, these funds are established to safeguard economic prosperity for future generations, strengthen fiscal stability, and lighten the tax burden on both corporations and ordinary citizens. They essentially function as sophisticated investment platforms meant to manage surplus budgets or natural resource revenues with precision.

In this spirit, Trump has entrusted the new Finance Minister, Scott Bessent, along with Commerce Minister, Howard Lutnik, to craft the fund’s blueprint and operational strategy, with their proposals expected in the near future. In Trump’s vision, the fund’s capital might fuel infrastructure projects, underpin medical research, launch innovative manufacturing, or even be channeled into direct investments like purchasing bitcoins—a move poised to lift the value of the leading cryptocurrency.

As an example, TikTok, we’re going to be doing something perhaps … and we might put that in the sovereign wealth fund, whatever we make, or if we do a partnership with very wealthy people — a lot of options, but we could put that as an example in the fund,

Trump stated.

Where Will the Money for the Sovereign Wealth Fund Come From?

While the president has yet to specify the funding channels, the likely sources include customs duty revenues and substantial direct investments from major capital. It’s notable that the U.S. once criticized other countries for allowing sovereign wealth funds to disrupt global trade and limit free investment, yet now it is considering this very strategy to enhance its own economic resilience.

Sovereign wealth funds traditionally invest in a range of assets—from stocks and bonds to gold and other high-potential ventures—aimed at generating sustainable long-term returns. If the U.S. can ensure a steady inflow of funds and assemble a well-diversified portfolio, its fund might eventually surpass those of Norway ($1.74 trillion), Saudi Arabia ($1.06 trillion), and the UAE ($1.5 trillion), claiming the title of the largest in the world.

Check out: Survey Reveals 81% of TRUMP Token Buyers Profited

Despite its status as the world’s largest economy, the United States has yet to form a sovereign wealth fund because of its continual budget deficits—typically offset by borrowing through treasury bonds. In contrast, individual states like Alaska have long managed their own funds, amassing billions through income derived from local natural resources.

And I think it’s going to be very exciting. We’ve studied best practices that’s done around the world. It will be a combination of liquid assets, assets that we have in this country as we work, work to bring them out for the American people,

Bessent observed, his words hinting subtly at bitcoin.

Trump’s recent policies have triggered diverse responses among investors. For instance, new tariffs targeting Canada, China, and Mexico led to a brief economic downturn that affected the entire market spectrum, including cryptocurrencies. The resulting liquidations exceeded $2.3 billion, with Bitcoin nearly dropping to $90,000 and some altcoins losing over 40% of their value. Nonetheless, it appears improbable that the mere signing of this decree, without additional details, will significantly influence the market at this point.

It is also important to note that one of Trump’s early decisions involved pardoning Ross Ulbricht—the Silk Road founder and committed Bitcoin user—who was sentenced to two life terms in 2014, along with banning the creation of a national digital dollar (CBDC). These moves were embraced by both the crypto community and crypto investors.