Bitcoin’s Biggest Bulls Put in Charge of Upcoming US Sovereign Wealth Fund
Bitcoin’s role in the global financial system could be poised for a seismic shift as President Donald Trump signs an executive order to establish a U.S. sovereign wealth fund (SWF). The move fuels speculation that Bitcoin may be included in the nation’s financial reserves for the first time, given that the two key figures appointed to lead the initiative—Commerce Secretary nominee Howard Lutnick and Treasury Secretary Scott Bessant—are among the most openly pro-Bitcoin officials in the administration.
Howard Lutnick
U.S. Joins the Sovereign Wealth Fund Game
A sovereign wealth fund is a state-owned investment vehicle designed to allocate capital into a variety of assets, including stocks, bonds, real estate, and alternative investments such as private equity and hedge funds. Many global economies have sovereign wealth funds managing trillions of dollars in assets, including:
Norway’s SWF: $1.8 trillion
China Investment Corporation: $1.3 trillion
Abu Dhabi Investment Authority: $1.1 trillion
The U.S. has long lacked a sovereign wealth fund, but this new initiative will position the nation alongside its global counterparts, with potential investments in strategic industries such as defense, medical research, and manufacturing.
Could Bitcoin Be Part of the U.S. Reserves?
The appointment of Bitcoin-friendly officials to oversee the fund has intensified speculation that BTC could be incorporated as part of its holdings. Howard Lutnick, the CEO of Cantor Fitzgerald, has previously likened Bitcoin to commodities such as gold and oil, stating:
“Bitcoin is rare, and it will become ever more rare and ever more valuable. Bitcoin will be financiable just like gold and oil.”
Cantor Fitzgerald is already building a Bitcoin financing model, reinforcing the idea that Bitcoin could play a role in the sovereign wealth fund’s strategy. Additionally, Sen. Cynthia Lummis, one of the most vocal Bitcoin advocates in Congress, responded to the executive order by calling it a “₿ig Deal”—a not-so-subtle hint at Bitcoin’s possible inclusion.
A Potential $500 Billion Bitcoin Inflow?
Apollo co-founder Thomas Fahrer suggests the U.S. sovereign wealth fund could grow to $5 trillion in assets under management. A 10% allocation to Bitcoin would equate to a staggering $500 billion investment into BTC over the coming years. This aligns with recent comments from BlackRock CEO Larry Fink, who revealed that a sovereign wealth fund had sought advice on allocating "2% or 5%" of its holdings into Bitcoin.
CoinShares Head of Research James Butterfill sees Bitcoin's inclusion as inevitable, given the strong pro-crypto stance of the fund’s leadership:
"From a fund manager’s perspective, including Bitcoin makes sense, and it’s highly likely that some Bitcoin will be part of the fund."
David Sacks Confirms Bitcoin Reserve is a Priority
Trump’s newly appointed "crypto czar," David Sacks, confirmed that evaluating a strategic Bitcoin reserve is "one of the first things" he will look into and referred to Bitcoin as “An excellent store of value”. While Sacks deferred specific questions on Bitcoin’s role in the sovereign wealth fund to Howard Lutnick, his statement signals a clear commitment from the administration to seriously explore Bitcoin’s inclusion as a national asset.
The executive order mandates officials to submit a detailed proposal within 90 days, further reinforcing the possibility that Bitcoin could soon play a crucial role in U.S. economic strategy.
David Sachs
The Future of Bitcoin in Institutional Finance
Trump’s newly appointed "crypto czar," David Sacks, confirmed that evaluating a strategic Bitcoin reserve is a top priority. While Sacks deferred specific questions on Bitcoin’s role in the sovereign wealth fund to Howard Lutnick, the executive order mandates a detailed proposal within 90 days.
If the U.S. follows through on integrating Bitcoin into its sovereign wealth fund, it would mark a historic moment for cryptocurrency. Such a move would not only further legitimize Bitcoin as a strategic global asset but also set the stage for other sovereign wealth funds to follow suit.
For investors and institutions, the coming months will be crucial as the world watches to see whether Bitcoin finally secures a place in the reserves of the world’s most powerful economy.