TLDR
- Trump signs executive order to create first-ever U.S. sovereign wealth fund within 12 months
- Bitcoin price jumps to $102,050, up 4% following the announcement
- Senator Cynthia Lummis hints at potential Bitcoin connection with cryptic “₿ig deal” tweet
- Norway’s sovereign wealth fund already holds $400M in Bitcoin indirectly
- Newly appointed crypto czar David Sacks to hold first press conference on U.S. digital asset leadership
The United States is set to establish its first-ever national sovereign wealth fund, following an executive order signed by President Donald Trump on Monday. The announcement comes as cryptocurrency markets show renewed strength, with Bitcoin trading above $102,000.
The executive order mandates the creation of a U.S. sovereign wealth fund within the next 12 months, marking a historic shift in American financial policy. 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.
Sovereign wealth funds are government-owned investment vehicles that typically take state revenues and invest them in various assets such as stocks, bonds, and real estate. These funds often derive their capital from natural resource exports and aim to create sustainable long-term returns for their respective nations.
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.
This is a ₿ig deal. https://t.co/ZShfQcEGwc
— Senator Cynthia Lummis (@SenLummis) February 3, 2025
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.
The Norwegian sovereign wealth fund (NBIM) indirectly holds 3,821 BTC, reflecting an increase of 1,375 BTC since June 30, 2024, and a yearly growth of 2,314 BTC—a 153% increase compared to its end-of-year 2023 holdings.
It is important to highlight that this exposure likely… pic.twitter.com/seQ12cM2Rn— Vetle Lunde (@VetleLunde) January 29, 2025
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.
Eric Trump contributed to the speculation about potential cryptocurrency investments, posting on X: “In my opinion, it’s a great time to add ETH.” Meanwhile, Ripple CEO Brad Garlinghouse suggested that any future crypto reserves should include a diverse selection of digital assets rather than focusing solely on Bitcoin.
The creation of the sovereign wealth fund comes during a period of high volatility in cryptocurrency markets. Bitcoin recently experienced sharp price movements, dropping to $90,000 before recovering above $100,000 within a 48-hour period, largely influenced by concerns over Trump’s trade policies.
The upcoming press conference is expected to address several key areas, including regulatory policies, innovation incentives, and national security considerations. Representatives from Congress will join Sacks at the event, indicating a collaborative approach to policy-making in the cryptocurrency and blockchain sectors.
However, experts note that the establishment of a sovereign wealth fund does not automatically guarantee government investment in cryptocurrencies. While such funds can receive financing from federal reserves, digital assets are not currently part of these stockpiles.
The U.S. sovereign wealth fund initiative represents a major development in American financial policy, with the fund’s investment strategy and focus areas yet to be determined. The executive order sets a 12-month timeline for the fund’s creation, during which its structure and investment priorities will be established.
Recent market data shows that cryptocurrency trading volumes have increased substantially following the announcement. The Coinbase Premium Gap metric suggests that U.S. institutional investors may be positioning themselves ahead of potential policy developments.
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