Last (3) night, in addition to the easing of the US tariff war, there was also good news. US President Trump signed an executive order instructing the Treasury Department and the Department of Commerce to establish a US sovereign wealth fund within the next 12 months.
In addition to potentially being used to promote the acquisition of the Chinese short video platform TikTok, the outside world also speculates whether this move is related to the establishment of a BTC strategic reserve, which has aroused widespread market attention.
Funding source in doubt, Trump calls 'tariffs' a possible option
According to a Reuters report, Trump told reporters:
"We will create a tremendous amount of wealth for this fund. I think it's time the US had its own sovereign wealth fund."
Sovereign wealth funds are investment tools owned by the state, which create returns for the state and citizens through investment in various assets. Usually, such funds are financed by the government's budget surplus. But due to the US's long-term fiscal deficit and lack of available surplus, Trump has proposed raising funds through "tariff revenue and other smart financial means", but this move still faces challenges.
In addition, Bloomberg reported that the Trump administration has considered transforming the US International Development Finance Corporation (DFC) in recent months to operate more like a sovereign wealth fund. Currently, the DFC, as a government agency, mainly cooperates with private enterprises to provide financing for projects in developing countries.
It is worth noting that Trump has nominated Benjamin Black, the managing partner of investment firm Fortinbras Enterprises, to head the DFC, and his father is Leon Black, the co-founder of Apollo Global Management.
Congressional approval remains key
Due to the poor fiscal situation of the US government, several experts said that the establishment of the fund may require congressional approval. Currently, the Trump administration has requested the Treasury Department and the Department of Commerce to submit a detailed plan within 90 days, including the source of funds, investment strategy, fund governance structure, etc., and further details are expected to be released in the coming months.
Treasury Secretary Scott Bessent said the plan is to complete the establishment of the fund within 12 months.
Possible uses: infrastructure, acquisition of TikTok..
Regarding the specific uses of the fund, Trump had previously proposed that the government should set up an investment tool to fund "major national construction", such as highways, airports, manufacturing development and medical research.
In addition, TikTok may become a potential investment target for the fund. Trump said:
"We'll take action, maybe related to TikTok, maybe not. If we make the right deal, we'll do it, otherwise we won't... We may include it in the sovereign wealth fund."
TikTok is currently facing uncertainty due to US national security regulations. Since January 19, US law has required ByteDance to sell TikTok or face a ban. After taking office, Trump signed an executive order to extend the implementation period by 75 days, and said he is negotiating with multiple parties, and is expected to decide the future of TikTok in February.
In addition, Commerce Secretary nominee Howard Lutnick pointed out that the fund may also be used for government investment in vaccine manufacturers to generate profits.
Preparing to establish a BTC reserve?
In addition to TikTok, the crypto community is also paying attention to whether this policy is related to the "national BTC strategic reserve". Trump had promised to establish a national BTC strategic reserve during the campaign, and signed an executive order at the end of January to assess the possibility of establishing a national digital asset strategic reserve.
Referring to international cases, the Norwegian sovereign wealth fund (NBIM) has indirectly held 2,446 BTC by investing in MicroStrategy, Marathon Digital and Coinbase, an increase of 938 BTC compared to 2023. This shows that BTC as an asset is gradually maturing, and more and more institutions are including it in their investment portfolios.
Market experts generally believe that the high volatility and market transparency issues of BTC make it unlikely to be included in central bank foreign exchange reserves. In comparison, if the goal of the sovereign wealth fund is to pursue investment returns, the probability of BTC becoming a part of it is higher. If the US sovereign wealth fund is ultimately established, the possibility of investing in BTC is worth continued attention.
