Trump’s Crypto Czar David Sacks sees potential for bitcoin in the U.S. sovereign wealth fund as officials explore its role as a strategic reserve asset.
US Sovereign Wealth Fund Could Stockpile Bitcoin, Trump's Crypto Czar Says
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Crypto Czar David Sacks on Bitcoin’s Potential Role in the US Sovereign Wealth Fund
Crypto Czar David Sacks has weighed in on the potential role of bitcoin in the newly announced U.S. sovereign wealth fund. Speaking to CNBC on Feb. 4, Sacks addressed the possibility of digital assets being included in the fund’s portfolio. He said:
It’s possible that the Sovereign Wealth Fund could decide that they want to make bitcoin or digital assets part of its portfolio.
However, he added: “You’re going to have to ask the incoming Commerce Secretary, Howard Lutnick, about that.” Sacks continued: “The item that President Trump asked our working group on digital assets to study is whether. It’s feasible to create either a bitcoin reserve or some sort of digital asset stockpile. And so we’re going to be looking at that question. We haven’t committed yet to doing it, but it’s one of the first things we’re going to be looking at.”
President Donald Trump signed an executive order on Feb. 3, calling for the creation of a U.S. sovereign wealth fund. The Order “directs the Secretary of the Treasury and the Secretary of Commerce to deliver a plan within 90 days for the creation of a sovereign wealth fund,” according to the White House’s fact sheet. The fund would invest national assets—totaling at least $5.7 trillion—to boost economic growth, reduce tax burdens, and strengthen fiscal sustainability. Trump aims to use the fund for strategic investments and long-term wealth generation. Sovereign wealth funds are used worldwide, and 23 U.S. states already manage similar funds worth $332 billion.
Trump has tasked Sacks with evaluating the feasibility of establishing a strategic bitcoin reserve. This initiative aims to position bitcoin as a hedge against inflation and strengthen the nation’s financial standing. Industry leaders and crypto advocates have lauded this move, highlighting that countries like El Salvador have already integrated bitcoin into their national financial strategies. The proposal has ignited discussions about the potential benefits and risks of a government-held bitcoin reserve, with proponents arguing it could enhance economic resilience, while critics caution about the cryptocurrency’s inherent volatility.
Incoming Commerce Secretary Lutnick, CEO of financial services firm Cantor Fitzgerald, has previously spoken favorably about bitcoin. At the Bitcoin 2024 conference, he highlighted the crypto’s value, comparing it to gold. “ Bitcoin is like gold and should be free trade everywhere in the world,” he said. His company has also been active in the crypto space, including managing reserves for Tether. Lutnick’s stance has fueled speculation that he may advocate for including digital assets in the sovereign wealth fund’s portfolio.
