[NEWS] President Trump orders creation of government-backed fund; may invest in Bitcoin etc.

On the 3rd, US President Trump signed an executive order ordering the Department of the Treasury and the Department of Commerce to establish a sovereign wealth fund. The fund is scheduled to be established within the next year.

Treasury Secretary Scott Bessent and Secretary of Commerce nominee Howard Lutnick have been appointed as responsible for the creation of the sovereign wealth fund. At this time, it has not been revealed what assets the fund will invest in.

In relation to the fund, President Trump mentioned the acquisition of the US business of TikTok, a video sharing social networking site originating in China, and said, "There is a possibility that we will be involved in some way." Last month, a law was enacted in the US that bans TikTok unless it is separated from its parent company, ByteDance. On his first day in office, President Trump signed an executive order ordering a 75-day moratorium on this law. This suggests the possibility of acquiring TikTok through a sovereign wealth fund.

Treasury Secretary Bessent also said, "We will look at best practices from around the world," emphasizing that the government will think outside the box when selecting strategic assets for future investment.

As President Trump signed an executive order ordering the creation of a government-backed fund, cryptocurrencies, including Bitcoin (BTC), which had fallen sharply the previous day, rebounded. At the time of writing, Bitcoin was trading at around $100,000 (approximately 15.53 million yen), up 5% from the previous day. Altcoins also recovered across the board, and the cryptocurrency market was up across the board from the previous day.

The government-backed fund, which has begun preparations for its creation, has not made any specific mention of strategic assets, but since Treasury Secretary Bessent and Mr. Rutnick have shown a positive attitude toward cryptocurrencies, there are voices of hope that Bitcoin and other assets will become investment targets.

Currently, there has been no concrete progress in the creation of a Bitcoin reserve, which was expected with the inauguration of President Trump. As a result, interest has been focused on the adoption of cryptocurrencies by the government-backed fund, which has begun moving toward its creation.

On the 3rd, the cryptocurrency market saw a large drop in prices over President Trump's additional tariffs on Canada and other countries. In particular, altcoins, which tend to be more volatile than Bitcoin, were sold off heavily in the wake of the risk-off trend.

The current cryptocurrency market is experiencing major fluctuations due to President Trump's every move, and it is likely that volatility will continue to increase depending on his actions.

Reference: White House Announcement
Image: Shutterstock

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