Trump Signs Executive Order to Create Sovereign Wealth Fund, Spark Crypto Speculation

US President Donald Trump recently signed an executive order to establish a sovereign wealth fund. This move has sparked speculation within the crypto industry, as the government's support for digital assets could further bolster the crypto market.

Danny McCabe, CEO of Flexa, stated in an interview with TheStreet Crypto that it is highly likely that the sovereign wealth fund will include Bitcoin (BTC) and possibly other US-based digital assets, such as Ether, which have real economic utility.

McCabe explained that this move would not only provide economic stability to the US but also serve as a significant leap in positioning the US as a global leader in the digital asset sector.

The creation of the sovereign wealth fund, which is expected to manage over US$13 trillion or around Rp212.420 trillion, is projected to take up to 12 months. Several crypto-friendly Cabinet members are involved in this effort, including Treasury Secretary Scott Bessent and US Commerce Secretary nominee Howard Lutnick.

Sovereign wealth funds have been used by wealthy nations such as Norway, Kuwait, Saudi Arabia, and Qatar to manage surplus funds, advance strategic priorities, diversify assets, and ensure long-term economic stability.

Crypto Leaders’ Response to the Sovereign Wealth Fund

Austin King, co-founder of Omni Network, suggested that the sovereign wealth fund could offer the Trump administration an easy path to gaining exposure to cryptocurrencies.

“The fund will likely be used to buy Bitcoin and other cryptocurrencies that are considered important in transforming America into a crypto powerhouse,” said King.

Ishmael Green, a crypto lawyer at the international law firm Diaz Reus, added that Trump has been signaling this move for several months.

“This is definitely going to happen, as Trump already controls half a billion dollars in cryptocurrencies, including Bitcoin and Ethereum worth several hundred million dollars,” Green stated.

Risks of Crypto in the Sovereign Wealth Fund

However, some experts have raised concerns about the risks of including crypto in the sovereign wealth fund. Mauricio Mondragon, Head of Products at crypto custodian Fortress Trust, pointed out that the volatility of cryptocurrencies and unclear regulations make them challenging to justify as government-backed investments.

He noted that the biggest challenge, if this plan moves forward, would be finding ways to safely store and manage these assets while avoiding political influence and ensuring compliance with existing regulations.

If this plan proceeds, the United States will join other countries that have already engaged in similar practices.

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