US Weighs Bitcoin Reserve for Sovereign Wealth Fund
In a recent joint press conference in Washington, DC, David Sacks—President Trump’s newly appointed crypto czar—detailed a broad pro-crypto agenda for the new administration. Sacks revealed that assessing the feasibility of including bitcoin as a reserve asset in a proposed U.S. sovereign wealth fund is among the top priorities for an internal working group.
The sovereign wealth fund, established by an executive order signed by President Trump on Monday, is designed as a federally owned investment vehicle aimed at monetizing government assets to support national priorities. The plan has sparked considerable interest from financial analysts, who note that bitcoin could play a strategic role in diversifying the fund’s asset base.
“We’re still waiting for some cabinet secretaries on the working group to be confirmed,” Sacks stated. “But once that’s in place, one of our first steps will be assessing the feasibility of a bitcoin reserve.” This evaluation comes as part of broader efforts to explore innovative revenue sources amid ongoing national debt challenges.
Industry experts see potential in integrating digital currencies within public finance. James Butterfill, Head of Research at CoinShares, explained that including bitcoin could serve dual purposes for the fund. “When you look at the two key figures behind the sovereign wealth fund, including Treasury Secretary Scott Bessent—both of whom are very pro-crypto—I would be hugely surprised if there wasn’t any bitcoin in it,” Butterfill remarked. He further compared the initiative to Norway’s strategic use of oil revenues, suggesting that similar methods could help the U.S. manage its economic challenges.
The new sovereign wealth fund is expected to not only generate government revenue through strategic asset investments but also to explore additional opportunities, such as acquiring strategic holdings. One potential area of interest is the acquisition of companies like TikTok, which remains under regulatory scrutiny due to its Chinese ownership.
In conclusion, as cabinet appointments are finalized and the working group moves forward, the possibility of a bitcoin reserve adds a novel element to the administration’s financial strategy. The initiative reflects a growing trend among policymakers to consider digital assets as part of broader economic reforms aimed at addressing fiscal challenges and leveraging new revenue streams.