President Donald Trump signed an executive order on Monday directing the Treasury and Commerce Departments to establish a sovereign wealth fund within the next year. The announcement has ignited speculation about whether the fund could serve as a platform for the U.S. government to acquire Bitcoin.

Although the executive order provides limited details on the fund's operations and financing, Trump expressed confidence in its potential, fueling further interest and uncertainty surrounding the initiative.

“We’re going to create a lot of wealth for the fund. It’s about time that this country had a sovereign wealth fund.” - Donald Trump, US President

President Trump suggested that the sovereign wealth fund could be financed through tariffs and other revenue sources, despite the ongoing U.S. budget deficit.

The involvement of Commerce Secretary nominee Howard Lutnick has fueled further speculation about the fund’s potential connection to cryptocurrency. Lutnick, the CEO of Cantor Fitzgerald, is a prominent Bitcoin supporter, with his firm acting as the custodian for Tether's substantial holdings of U.S. government securities. He has also publicly disclosed his personal investment in Bitcoin, raising additional questions about the fund’s potential investment strategies.

Senator Cynthia Lummis, a well-known advocate for Bitcoin, responded to the announcement, calling it “a big deal,” suggesting that the sovereign wealth fund could be used as a vehicle for the U.S. government to acquire Bitcoin.

Treasury Secretary Scott Bessent confirmed that the sovereign wealth fund is expected to be operational within the next 12 months, with plans to monetize the U.S. balance sheet’s asset side for the benefit of the American people. He indicated that the fund's strategy could include a mix of liquid assets and domestic resources.

Additionally, President Trump suggested that the fund might be used to facilitate the acquisition of TikTok, broadening its potential investment scope.

“We’re going to be doing something, perhaps with TikTok, and perhaps not. If we make the right deal, we’ll do it. Otherwise, we won’t, we might put that in the sovereign wealth fund.” - Donald Trump, US President

This move extends Trump’s campaign proposal to create a sovereign wealth fund, which was originally envisioned to finance infrastructure projects, manufacturing growth, and medical research.